Competition for market share of inbound shipping remains fierce among U.S. ports, especially as the east coast gears up for an expanded Panama Canal and trade flows continue to shift among developed and emerging countries, according to Jones Lang LaSalle’s fourth annual seaport report. As reported in the firm’s earlier studies, commercial real estate surrounding major U.S. seaports continues to outperform the broader industrial market.

The report, which analyzes the health of major domestic container seaports and their surrounding real estate, also reveals that exports are creating inland development opportunities and are driving new connections between domestic maritime ports, inland destinations and their surrounding distribution real estate markets.

According to the Jones Lang LaSalle report, investment is pouring into ports: At least $13 billion of public investment is earmarked for port development in the next decade. Limited options are available for large space users: only 20 blocks of space are available for users requiring 250,000 square feet within five miles of a major U.S. port.

“Developers, investment interests and supply chain executives remain optimistic about our nation’s seaports,” said John Carver, head of JLL’s Ports, Airports and Global Infrastructure (PAGI) group, “Influenced by an evolving maritime logistics industry, global and trade transformations such as the extension of the Panama Canal and growth of U.S. exports, they see a bright long-term future. Capital is being poured into seaport infrastructure from both the public and private sectors.”

CHICAGO EXEC ANCHORS WHEELING

The Village of Wheeling’s manufacturing base is anchored around its general aviation airport, Chicago Executive Airport, the third busiest in Chicagoland. The Village recently approved the third new corporate hangar project in as many years and is reviewing opportunities to create expanded land availability in response to increased demand.

Few communities can boast of a similar connection to the national and international world of business and commerce. Chicago Executive Airport serves as a hub for business and industry and as a logical magnet drawing businesses to the area.

Chicago Executive Airport has seen significant improvements recently, and many of those improvements are ongoing. For instance, in 2012 the airport completed a 780-foot extension of Taxiway Echo and Atlantic Aviation built a new hangar to service the needs of a new client, a client who recognizes the potential of Chicago Executive Airport.

That new hangar includes 26,000-square feet of hangar area and 7,800-square feet of office space. An attractive building, it is consistent with the style of Atlantic’s other facilities.

Atlantic Aviation

Atlantic Aviation also renewed its commitment to the airport with a $750,000 remodel of its terminal at CEA. Both stylish and functional, the remodel has improved traffic flow, includes a second cafeteria, larger restrooms and a more spacious pilot’s lounge. While aesthetically embracing the new century, the remodel also incorporates the latest in technology, including large-screen television monitors and wireless Internet access for personal and professional use. The monitors are connected to Apple TV providing games, movies, television programs and business presentation capabilities.

Another new hangar is on the planning board, and a third FBO will be coming to Chicago Executive. The new hangar and the new FBO bring additional partners to the airport. Hangar 18 is an 18,000-square-foot hangar that Signature Flight Support is building for “Tin Goose Garage,” a flight support company previously based at DuPage Airport.

The new facility will include 15,000-square feet of hangar space and 3,000-square feet of office complex on the north side of Tower Road. The plans call for a state-of-the-art building that will help to keep Chicago Executive Airport at the forefront of aviation for years to come. The company plans to construct an $8-million facility in the southeast area of the airport. It will include 30,000-square feet of hangar and a 10,000-square-foot terminal.

More development is on the way. In July 2012, Wheeling retained a land planning consultant to evaluate alternate development scenarios over the eastern portion of the airport district to outline aviation and commercial development options. Once complete, the new comprehensive plan will serve as a concise guide for the future growth of the airport district and the Village is actively recruiting aviation developers to assist in implementing new redevelopment projects.

PORT OF STOCKTON NETS $1.6 BILLION IN INVESTMENTS

The Port of Stockton is one of the most vibrant seaports in California, which has attracted more than $1.6 billion in private sector investments and creating more than 2,100 family-wage jobs for our community in just the last five years alone, while the local area is contending with nearly 20 percent unemployment. Additionally, another $1.7 billion in projects are currently under negotiation, which will bring an estimated 1,100 new jobs to Stockton.

Port of Stockton

Following the economic downturn of 2008, the number of ships calling the port has increased 45 percent. Tonnages crossing Stockton’s docks have increased by 63 percent. A decade of infrastructure investment exceeding $130 million has combined to bring these new economic opportunities to the greater Central Valley region.

The Port of Stockton recently became one of the rare West Coast ports that is a net exporter of American products, shipping iron ore from Utah, rice from Northern California, City of Stockton-processed sulfur, and coal from Colorado, putting more people to work on the docks and in the warehouses. It recently doubled the tonnages of chemical fertilizers imported to support the agricultural industry of the entire San Joaquin Valley and now imports more than 95 percent of the chemical fertilizers used in the valley.

The port generates more than $5 million in tax revenue every year with existing projects, which will nearly double in the short term as projects under construction and in negotiations are built. These funds are used to help pay for local government services for our community. The Port of Stockton does not tax its citizens to pay for port activities.

A new containers-on-barge service, called the M-580 Marine Highway, for shipping ocean containers between the ports of Stockton and Oakland is scheduled to start operations this year. This service can remove about 700 trucks from the highways with each barge movement, making a major contribution to improving the air quality, safety and road capacity for our region.

M-580 Project Scope

• Import containers arrive at the Port of Oakland and are trucked along the I-580/I-5 corridor to distribute centers in the Central Valley.
• “Import” containers return to the Port of Oakland empty, causing inefficient logistics. Marine Highway project will assist in “interchange” of empty imports to loaded exports at inland DCs.
• Current transportation inefficiencies create major issues with congestion, pollution and public safety.
• 1600 containers move via truck everyday between the Port of Oakland and the Central Valley.

The service contemplates three round trips per week, handling import and export traffic. The goal is to have nothing but revenue-bearing loads as opposed to empty containers for re-positioning. The approximate cost is estimated to be the same per container, which includes diesel fuel charges. One advantage by using the barge is that containers can be loaded heavier than the 80,000- pound weight limit for trucks traveling between Stockton and Oakland via the highway system. This could translate into a 20 percent savings in ocean freight to the cargo owners.

Please contact the Port of Stockton for more details: (209) 946-0246, or visit the Web site.

HENDRICKS COUNTY, IN: CENTRAL LOCATION, GLOBAL RESOURCES

Given that it’s a substantial distance from any coasts or borders, Hendricks County, Indiana might seem to be a surprising place for a Foreign Trade Zone (FTZ). However, its central location, transportation network, and labor resources have proven to be a tremendous benefit to companies that do business globally. At the same time, the county’s comfortably attractive way of life strengthens manager and employee satisfaction.

Hendricks County is adjacent to the Indianapolis International Airport’s extensive international air cargo resources, including a FedEx hub and dedicated Cargolux service to Europe. The UPS Louisville hub is just two hours south by Interstate highway. The county is home to Avon Yard, the center of CSX Railroad’s extensive Indiana network, with scheduled intermodal service connecting local companies to West Coast ports.

Combining that access to international transportation with the financial benefits of the FTZ has led many companies to give Hendricks County pivotal roles in their global operations. For example, wireless device supplier BrightPoint uses its Hendricks County FTZ facilities to package and program devices and accessories sourced from multiple countries, and then to distribute the ready-for-retail kits worldwide.

Domestic distribution is just as convenient. With fast connections to Interstates 65, 74, 70, 465 and 69, Hendricks County is less than a day’s drive from New York, Chicago, St. Louis, Dallas, Cincinnati, and Atlanta, providing overnight trucking access to more than half of the nation’s population. County officials have improved those connections with the development of the locally funded Ronald Reagan Parkway, which will ultimately link I-70, I-74, and I-65. The ability to move goods in and out of the county quickly has made it one of the nation’s most popular sites for logistics operations.

With a population of just under 150,000, Hendricks County is at the center of a large labor shed that incorporates the Indianapolis area and several smaller cities. Employers are able to tap into an abundance of highly skilled labor, including workers with expertise in technically demanding fields such as bioscience, medical devices, and motorsports. Hendricks County is home to VULTC, Vincennes University Logistics Training Center offering a certification in logistics and materials handling. Numerous colleges and universities are located within a two-hour radius, including the research facilities of Purdue University, Indiana University, and IUPUI.

That powerful combination of assets explains why the county has remained strong as the rest of the nation has struggled to recover from the recent recession. Over the past half-decade, companies have invested more than half a billion dollars into the local economy, leading to more than 7,800 new jobs, and squarely placing Hendricks County on Money Magazine’s list of the top 20 counties nationwide for job growth. In 2012 alone, companies poured $118 million into the county and created 1,710 jobs.

The county’s public- and private-sector leaders have taken an aggressive, two-pronged approach that focuses on both attracting new businesses and encouraging growth among existing employers. That strategy is powered by highly effective collaboration between business, government, education, and other sectors, allowing faster decision-making and innovative, practical solutions for business needs.

A prime example is the Hendricks College Network, a non-profit linking employers with Indiana’s wealth of educational and workforce development resources. The group leverages its connections with Indiana’s colleges and universities to develop specialized, highly sophisticated training programs for companies, and its success has been instrumental in attracting new local campuses of several universities.

To ensure that growth won’t compromise the way local residents live and play, private-sector leaders have joined forces with government officials and area non-profit organizations to create Hendricks County In Focus. This cooperative undertaking is developing ways to monitor the factors impacting local lifestyles, giving local leaders valuable guidance for decision-making—and making sure that Hendricks County continues to be a successful center for global companies.

TUPELO/LEE FTZ: 15M SQ. FT.

Foreign-trade zones help U.S. companies overcome competitive disadvantages stemming from U.S. trade laws and procedures. Within a Foreign-trade zone, companies are permitted to perform a number of procedures before the merchandise is charged duty. These procedures include sampling or inspecting merchandise (and destroying faulty merchandise without ever paying duty on it), storing and warehousing, re-labeling, repairing, displaying, assembling, These steps allow companies to benefit from interest on capital by delaying duty payment and permitting goods in the zone to be used as capital against loans. FTZs also drastically reduce the number and aggregate costs of entry fees.

As a member of the Greater Mississippi Foreign Trade Zone, Tupelo/Lee County couples these FTZ benefits with a long-standing history of community support for manufacturers.

With eight FTZ sites including over 5,881 acres of land, 2,780 developable acres, 15 million square feet of manufacturing space, 6.1 million square feet of warehouse/distribution space, and over a hundred companies already receiving the benefits of FTZ operation, Tupelo/Lee County provides not only the most beneficial import/export status, but also the leadership and cooperative spirit that have made us one of the foremost manufacturing locations for over a half century. If you have any questions please contact Shane Homan at (800) 523-3463 or shoman@cdfms.org.

The post INDUSTRY FOCUS: Points of Entry for Cash-Rich Cargo appeared first on Business Facilities.

This year’s Battelle/BIO State Bioscience Industry Development report highlighted significant job growth in the bioscience sector over the past decade, indicating the importance of the biosciences as an economic driver for the nation.

The fifth biennial report analyzed the industry’s impact on the economy, which includes a state-by-state analysis of the industry, reveals that in the first decade of the 21st century, the bioscience industry grew by 6.4 percent, adding more than 96,000 jobs. By comparison, total employment for all private sector industries in the U.S. fell by 2.9 percent, losing more than 3 million jobs. The majority of the jobs added were in research, testing and laboratories, adding 23.8 percent to the workforce or 87,000 jobs.

“Given the continuing concerns about job creation in the U.S., we are pleased to report an increase of more than 96,000 jobs in the bioscience sector since 2001, even after accounting for the impacts of the recent severe recession,” said Jim Greenwood, president and CEO of the Biotechnology Industry Organization (BIO). “The Battelle/BIO report highlights the long term expansion of our industry and the high-paying salaries of our researchers and scientists that are developing innovations and life-saving medicines.”

The U.S. bioscience industry weathered the recession much better than the overall economy and other leading knowledge-based industries. While national private sector employment fell by 6.9 percent from the outset of the recession in 2007 through the first year of the recovery in 2010, bioscience industry employment fell a mere 1.4 percent.

The strength of the bioscience industry is seen when compared to other leading knowledge-based industries, such as information technology services, aerospace, computer equipment and finance and insurance, all of which recorded net job losses during the same period.

The biosciences has a broad footprint across the nation: 34 states and Puerto Rico have an employment specialization (20 percent or more concentrated than the nation) in at least one of the five bioscience subsectors (drugs and pharmaceuticals, medical devices and equipment, research, testing and medical laboratories, agricultural feedstock and chemicals, and bioscience-related distribution).

The bioscience sector continues to be a source of high-wage jobs. The average bioscience job paid $82,697 in 2010, $36,000 more than the average private sector job.

Illinois Medical District Thrives
The Illinois Medical District (IMD) is a special-use zoning district located just west of the Chicago central business district. Created by law in 1941, the 560-acre environment is 24/7/365 and includes four medical pillars: Rush University Medical Center (Rush), University of Illinois Medical Center (Rush), John H. Stroger Jr., Hospital of Cook County (Stroger), and the Jesse Brown VA Medical Center (VA).

The District generates $3.3 billion in economic activity and $220 million in annual research. It is the nation’s largest urban medical district, employs 20,000 people, receives 75,000 daily visitors and is home to the nation’s largest college of medicine (UIC College of Medicine).

Examples of other District tenants include: Easter Seals of Metropolitan Chicago, the American Red Cross of Greater Chicago, FBI, GreatPoint Energy, Illinois State Police Forensic Science Center at Chicago, UIC College Prep and the Anatomical Gift Association.

The District is focused on expanding innovation in healthcare, medical science, information technology, biotechnology, medical devices, clean technology and supportive assisted living. To that end, the District has approximately 52 acres of land available for development, 42 of which are located in the District Development Area (DDA). This land is conveniently situated within the IMD’s boundaries and is located immediately adjacent to mature healthcare and university campuses. Additionally, the District has 10 acres of prime real estate available for development in the “Gateway” area of the Medical District, just steps away from the four pillars.

Bioinspire Blossoms in AZ
Bioinspire is Arizona’s first incubator dedicated to the development of medical devices. The groundwork for Bioinspire was created after the city of Peoria adopted its Economic Development Implementation Strategy in December 2010. A partnership between the city of Peoria, BioAccel, and the Plaza Companies was approved by the Peoria City Council in November 2011.

Plaza Del Rio

Bioinspire is located on the Plaza del Rio Campus, a 185-acre “medical hub” featuring 400,000 square feet of medical and healthcare offices and outpatient centers along with 1,000 beds of various components of senior living options. The campus will provide an environment for the growth of companies once they leave the incubator. Bioinspire consists of 6,800 square feet divided into four individual laboratories, one larger common laboratory (a unique feature providing laboratory access to tenants that do not require an individual lab), ten offices of various configurations providing for flexibility, a break room where tenants can connect and a shared conference room.

BioAccel® is a non-profit organization, that accomplishes its economic development mission by focusing on late stage research and technology; transforming research discoveries into new business opportunities with a focus on medical devices, tools, and services. As the management arm of Bioinspire™, BioAccel provides Bioinspire resident companies:

• Proof-of-concept funding up to $300,000 per company;
• Hands-on technical and business mentoring, strategic planning;
• Free and/or reduced commercial space at Bioinspire
• Ability to take advantage of shared resources, including centralized FDA Quality Control System, access to Solidworks (CAD software), and basic shared lab equipment; network of consultants.

The post INDUSTRY FOCUS: Biotech, A Recession-Proof Growth Sector appeared first on Business Facilities.

Agribusiness includes entities that most significantly affect how food is grown, processed and distributed. As one of the largest segments of Agribusiness, the food processing industry interacts with farmers, livestock growers, distributors and consumers to convert fresh ingredients such as fruits, vegetables, grains, meats and dairy products into finished goods. It involves the methods and techniques used to transform raw elements into food for human consumption—removing toxins, easing marketing and distribution tasks and increasing food consistency and shelf life. Food processing also increases the seasonal availability of many foods and enables transportation of perishable foods across long distances, creating more diverse food opportunities.

Food manufacturing is one of the United States’ largest manufacturing sectors and the demand for processed food tends to be less susceptible to fluctuating economic conditions than other industries.
A number of technology fields, including biotechnology and nanotechnology, are connected to the food processing industry. Since innovation can boost profits, it is a main driving force, helping companies cut production expenses by reducing waste, employ effective manufacturing techniques, optimize automation to lower labor costs, and cut down on input materials such as energy.

Food processing industries and practices include canneries, meat and vegetable packing plants, and slaughterhouses among others. Occupations include butchers and meat cutters, poultry and fish trimmers, and operators and tenders of roasting, baking and drying machinery.

A number of factors must be taken into account when processing food. Companies must consider hygiene, energy efficiency, waste, labor and cleaning stops. Food can be produced by several methods.

• One-Off Production is when one product is made. It is used when customers order something to their own specifications.
• Batch Production is when a small quantity of the product is made. It is used when there is range within a product line and the size of the market is not clear. This involves estimating the amount of customers that will want to buy a product.
• Mass Production is when a large quantity of a product is made on a production line. It is used when there is a sizeable market for a large number of identical products.
• Just In Time is when all components of the product are there. The customer chooses what they want so that the final product is made on the spot, such as in sandwich shops and some fast food restaurants.

Many people have gained valuable time replacing the longer task of preparing meals from scratch with buying or using food that only needs to be baked, boiled or opened. What may have otherwise demanded an hour can be accomplished in less than ten minutes, taking a strain off most families and individuals with tight schedules.

Food quality also is a major concern for many consumers and has therefore influenced the trend toward buying organic. And while it may take food processors more time and money to produce the product, with retail sales growing each year, it may be worth it in the end.

Organic is a guarantee about how an agricultural product was grown and handled before it reached the consumer.

Organic processors maintain a food’s organic status by producing it using methods that do not involve inputs such as synthetic pesticides and chemical fertilizers; by not processing it using irradiation, industrial solvents or chemical food additives; by carefully tracking ingredients; and by using detailed record keeping.

Ingredients in organic food must be grown and the product manufactured according to the national standards specified by the National Organic Program (NOP). Both the ingredients and the facility where the food is processed must be certified organic.

In addition to pleasing consumers through food safety, ingredients, taste, cost and ease of preparation, food processors also must consider their proximity to raw materials and their final destination. Here are some locations that can help companies cut down on transportation and distribution costs.

Genesee County, NY is a Food Processing Hub
Just an hour North of New York City begins a great expanse of farmland that extends hundreds of miles to the Pennsylvania border.

Agriculture is the second largest industry in NY behind tourism. In fact, in 2009, the agribusiness cluster of industries generated $49 billion to the state economy.

In 2010, NY ranked second in the U.S. in apples and maple syrup production; third in grape production; fourth in dairy, squash and pear production; and fifth in onion production. In Western NY and the Finger Lakes region, which includes Genesee County, there are approximately 342 food processing entities and 670 farm equipment dealers, service companies and wholesalers. In 2011, the food manufacturing sector employed almost 16,500 people with an average annual salary of $54,081.

The food processing and agricultural industries in the region continue to grow, particularly in Genesee County, which was named the third-fastest growing food processing region in the U.S. by Business Facilities in 2010 and 2011.

The Muller Quaker Dairy facility is making progress.

New companies to the region include Barilla, Alpina and Muller Quaker Dairy. Both the crop and dairy industries are benefiting from the increase in food processors locating in the area and existing processors such as Perry’s Ice Cream, O-AT-KA Milk, Rosina, Kraft, Yancey’s Fancy’s and Rich Products continue to grow by taking advantage of new market opportunities.

The region has incredible dairy, crop and viticulture supply chains as well as outstanding natural resources, including a significant natural water supply. The area is between two major metropolitan regions—Buffalo and Rochester—providing a highly educated, trained and productive workforce.

Growth of the food processing sector in NY has been spurred by the completion of the 202-acre Genesee Valley Agri-Business Park in Batavia, NY. The Ag-park was nearly a decade in the making, including a $10.5-million investment in infrastructure hookups and water supply.

The success at the Ag-park has been evidenced by two yogurt manufacturing plants to the region that are now under construction. The total construction investment of both projects is approximately $225 million.

Alpina will create 50 jobs in the near term. The facility is expected to begin production in the fall of 2012. Long-term Alpina has the potential to triple the size of the plant which could lead to a doubling of the workforce.

Entrance of Alpina’s new Agri-Business Park facility.

The other new yogurt manufacturing plant is a joint venture between Muller Quaker Dairy—one of Europe’s largest dairy processors—and global giant Pepsico. The plant will initially create 286 production jobs when it opens in 2013.

Economic development agencies are diligently working with other projects actively considering locating at the Ag-park. They aim to make Genesee County the yogurt capital not only of New York State, but of the world.

Livingston County Delivers its Bounty to a Rich Market
Just south of Rochester, in the beautiful Finger Lakes region of western New York State, you will discover Livingston County. Bisected by I-390 and only 10 miles south of the New York State Thruway (I-90), this community of 65,000 residents displays continuous growth in population and employment, especially in the food processing sector.

Barilla America, which produces the nation’s #1 brand of pasta, selected Avon, NY for its $100-million manufacturing and distribution center after a site-selector led search of 54 locations in 13 states. The company has expanded twice since locating in Livingston County. Using the IDA and Empire Zone program, $3.3 million of infrastructure (roads, water, sewer, lighting and a railroad siding) was constructed at no cost to local taxpayers. Using the BUILD NOW NY program to pre-permit sites as “shovel-ready,” all permits were obtained in 54 days and the facility was constructed in only 53 weeks.

Agriculture and food production thrive and grow in the Finger Lakes region for many reasons. One of the most important factors is the proximity of high volume specialty support suppliers. Sweeteners Plus is one of those critical suppliers as it furnishes sweetener ingredients to more than 300 food manufacturers in New York and nearby states.

The Livingston County IDA assisted the company through tax abatements to expand three times and increase its territorial market. Today the company directly employs 90 and has created many more jobs at Kraft, wineries and beverage manufacturers and in rail and truck distribution.

Because time is of the essence—particularly with delivering food products—Livingston County is a great location for food processing. The richest market in the world is within a radius of 750 miles of New York State; this radius includes half of the total U.S. and Canadian populations and covers the 18 Northeast states and parts of two Canadian provinces.

Half of the U.S. personal income, wholesale sales, and about 50 percent of its retail trade are accounted for within this radius. More than 50 percent of the land area in Livingston County is used for agriculture, and the county is within the top five New York counties in grain, beet, bean and dairy production.

The post INDUSTRY FOCUS: The Process of Food appeared first on Business Facilities.

Hyundai and Kia use Foreign Trade Zone status to handle and process auto cargoes arriving at the port.

By Dominique Cantelme
From the May/June 2012 issue

The United States is the largest trading nation in the world for goods and services. Its 327 official ports of entry, including seaports, airports, and land border locations, provide the link for getting goods to consumers and transporting U.S. made products overseas for export.

According to U.S. International Trade in Goods and Services by the U.S. Census Bureau and the U.S. Bureau of Economic Analysis, U.S. exports of goods and services rose by 16.6 percent in 2010 and 14.5 percent in 2011. 2011 exports reached $2,103.1 billion and imports $2,661.1 billion. For goods, exports were $1,498 billion and imports were $2,235 billion. For services, exports were $604.9 billion and imports were $425.9 billion.

2011 exports of goods were up $202.4 billion from 2010. Increases occurred in industrial supplies and materials ($107.7 billion); capital goods ($44.8 billion); automotive vehicles, parts and engines ($20.5 billion); foods, feeds and beverages ($18.4 billion); consumer goods ($10.4 billion); and other goods ($0.5 billion). Imports of goods were up $293.8 billion from 2010. Increases occurred in industrial supplies and materials ($153.7 billion); capital goods ($61.8 billion); consumer goods ($30.4 billion); automotive vehicles, parts and engines ($29.0 billion); foods, feeds and beverages ($15.7 billion); and other goods ($3.2 billion).

2011 exports of services were up $56.0 billion from 2010. Increases occurred in other private services ($20.8 billion), royalties and license fees ($14.2 billion), travel ($12.2 billion), passenger fares ($5.8 billion), other transportation ($2.6 billion) and transfers under U.S. military sales contracts ($0.3 billion). 2011 imports of services were up $22.8 billion from 2010. Increases occurred in other private services ($10.3 billion), passenger fares ($3.9 billion), travel ($3.8 billion), other transportation ($3.5 billion) and royalties and license fees ($2.2 billion).

The U.S. Foreign Trade Zone (FTZ) program has been a critical tool in helping U.S. ports remain a strong economic force in the global community. The program was created in 1934 with the goal of helping businesses in the U.S. stay competitive with foreign manufacturers and suppliers. According to the National Association of Foreign Trade Zones, a not-for-profit trade association, there are currently 256 General Purpose Zones and 498 Subzones in the United States (including Puerto Rico). They handle almost $500 billion worth of merchandise annually.

Located in or near a U.S. Customs Port of Entry, FTZs benefit companies in many ways. Regardless of proximity, foreign and domestic merchandise in these areas are considered to be outside of “Customs territory”. This means that if the final product emerging from a FTZ is exported, no U.S. customs duties or excise taxes are levied. The FTZ program directly supports hundreds of thousands of U.S. jobs. And while the U.S. government incurs a reduction in Customs duty revenue by the use of FTZs, it more than makes up for it by the income tax gained from direct and indirect jobs FTZs help to create and retain. In addition, local governments benefit from sales and property taxes.

Look no further than the following ports and FTZ locations to position your business for success.

Philadelphia Regional Port Authority: Port On A Mission

The mission statement for the Philadelphia Regional Port Authority is as follows: The Philadelphia Regional Port Authority (PRPA) is an independent agency of the Commonwealth of Pennsylvania charged with the management, maintenance, marketing and promotion of publicly owned port facilities along the Delaware River in Philadelphia, as well as strategic planning throughout the port district. PRPA works with its terminal operators to modernize, expand and improve its facilities, and to market those facilities to prospective port users. Port cargoes and the activities they generate are responsible for thousands of direct and indirect jobs in the Philadelphia area and throughout Pennsylvania.

Concise words, solid message. But what does it all mean to you and your business? More specifically, what does the mission mean to your business if you decide to expand its operations to the Philadelphia region?

Dynamic things are happening at the almost four centuries-old seaport, developments that are combining the Philadelphia Regional Port Authority’s long history and unsurpassed experience with the efficiencies of the new. Thanks to the support of state and federal governments, the PRPA’s single biggest piece of news these days is the Philadelphia Regional Port Authority overseeing the deepening of the Port of Philadelphia’s main channel in the Delaware River from 40 to 45 feet. Projected for completion in about three years, the new deeper Delaware River will allow the industry’s new larger containerships to deliver and take on cargoes at the port, cargoes that companies in the region eagerly await or are eagerly sending outward.

Coinciding with the channel-deepening project is the Southport initiative, which is the construction of a brand new container-handling facility in South Philadelphia, adjacent to PRPA’s Packer Avenue Marine Terminal. Between deeper water and this new marine terminal complementing existing facilities, the already efficient, economical port will be able to serve area businesses better than ever before—exactly what they’d like to do for you.

PRPA’s marketing team stands ready to assist private businesses like yours in the development of effective logistics plans. Their even ready to help companies that aren’t including waterborne commerce as a major part of its operations, or even companies that do generate waterborne commerce but ship it through non-PRPA cargo terminals in the region. Why is this?

As Grantee of Foreign Trade Zone No. 35, PRPA has the ability to grant FTZ Zone or Subzone status to manufacturers operating in the FTZ jurisdiction. Having existing companies operate more successfully or attracting new companies to the region is good for everyone, whether or not PRPA’s public port facilities directly benefit.

Those that consider making the Port of Philadelphia part of their logistics chain will find that PRPA and its terminal operators are ready to serve the nation’s businesses. The Port of Philadelphia is proud of all the businesses they’ve helped to attain Zone or Sub-Zone status in the region, whether or not their cargoes are seen on their docks.

Yes, so much is happening at the Port of Philadelphia these days: deeper water; expanded cargo capacity, a vibrant FTZ program and much more. Why not take a moment to visit the Philadelphia Regional Port Authority’s web site, at www.philaport.com, to learn more about the news briefly touched on, as well as other exciting projects and initiatives. It might be your first step toward a profitable decision to make your business operations a productive member of the Philadelphia region’s stable and growing economy.

Port Freeport: 100 Years In The Making

Port Freeport came into being more than 100 years ago when the first jetty system was built in Freeport, Texas. Since that time, Port Freeport has become one of the fastest growing ports on the Gulf Coast and currently ranks 16th among U.S. ports in international cargo tonnage handled. With a current channel of 45-foot depth, soon to be widened and deepened, just three miles from open Gulf of Mexico waters, Port Freeport offers more than 7,500 acres for future development. Port Freeport serves its customers and stakeholders through development and marketing of competitive world-class navigational capabilities, technically advanced marine and multimodal terminal services and port-related industrial facilities while achieving profits and creating jobs as a leading economic catalyst for the Texas Gulf Coast.

Port Freeport offers the following benefits: rail, highway, vessel and/or barge transportation can be seamlessly utilized; direct access to the Gulf Intracoastal Waterway, Brazos River Diversion Channel, State Highway 36, State Highway 288 and Union Pacific Railroad; only a few minutes commute from quality schools, housing and medical care and just 59 miles south of downtown Houston, Texas—the nation’s fourth largest city; surrounded by a highly qualified, technical labor pool; available existing water supply, wastewater collection, electrical distribution, gas and telephone; existence of adjacent properties that could support future growth and development; air freight service by all national carriers from multiple surrounding airports within 60-mile radius; availability of local, high-quality trainable workforce and close proximity to universities and technical colleges; ability to manage inventory and/or manufacture duty deferred, inside its Foreign-Trade Zone; Texas is a right-to-work state, which leaves you the right to choose between union and non-union labor; the state of Texas, Brazoria County and Port Freeport offer competitive incentives, tax credits and exemptions.

Recent developments at Port Freeport include the construction of the first phase of its Velasco Terminal, which will add further cargo-handling capabilities at the Port. The construction of a new 800-foot-long dock and 20 acres of backlands promise an eventual offering of 2,400 feet of berthing and more than 90 acres of supporting land.

Meanwhile, Port Freeport continues to work in conjunction with federal and state authorities to advance the project to deepen the Port’s channel to 55 feet from its present 45 feet, plus substantially widen the channel as well. The Port is hopeful that the feasibility study will indicate, as have preliminary analyses, that benefits of the channel project should exceed its $300 million cost.

With so many developments pointing toward growing diversified activity at Port Freeport, there is much anticipation for the Port to expand upon its already impressive status as an economic cornerstone of the community and region—a dynamic force directly and indirectly responsible for more than 55,000 jobs and having an overall annual economic impact in Texas of $10.2 billion.

Unlike many ports, which are running out of available land, Port Freeport boasts more than 7,500 acres of currently undeveloped tracts, all proximate to the waters of the Gulf of Mexico. The Port is a mere three miles—45 minutes by ship—from the open sea.

The Foreign-Trade Zone Program adds to Port Freeport’s appeal. Since established in 1988, Port Freeport’s Foreign-Trade Zone No. 149 has helped American companies involved in global commerce to save money on the products they import into the U.S. through deferral, reduction and/or elimination of Customs duties assessed on foreign merchandise. In 2012, Port Freeport submitted an application to the Foreign-Trade Zones Board to reorganize FTZ No. 149 under the Alternative Site Framework offering FTZ benefits to companies located in Brazoria and Fort Bend County.

Those seeking additional information about Port Freeport are encouraged to check out Port Freeport’s web site at www.portfreeport.com or contact Mike Wilson at 1-800-362-5743, ext. 4325, or by e-mail at wilson@portfreeport.com.

Newark: World-Class Logistics

“It is not just about infrastructure, access is key,” said Lyneir Richardson, CEO, Brick City Development Corporation. “No other city in America offers access to Wall Street and global trade, just fifteen minutes apart. Manhattan is only minutes away,” said Richardson.

Newark boasts some of the finest infrastructure in the U.S. and indeed the world. With an international airport, seaport, state-of-the-art rail system and network of highways converging on the city, Newark also has become a global transportation hub. More than 620 million tons of freight—valued at over $850 billion—move through New Jersey’s ports every year. Newark is also one of the most connected domestic markets, with over six forms of transportation converging in one hub.

Access is what is fueling Newark’s competitiveness. Ongoing investments in access and infrastructure, including sustainable initiatives such as a bio fuel terminal (2011) and the raising of the Goethals Bridge—which will allow access to the Panama Canal—all help to strengthen access to global markets for the long-term.

Major corporate icons such as Panasonic, Prudential, Bonita Banana, Standard Chartered and United Airlines have selected Newark as their U.S. Headquarters, attracted by the city’s business advantages:

• Access to markets: Port Newark is the principal containership facility for goods entering and leaving the New York metropolitan region and the entire Northeast U.S.
• Access to talent: Newark’s fully developed transportation network allows easy access to an educated workforce in and near the city. Newark’s large multilingual population and six universities add to the value proposition. More than 40,000 college and university students attend school in the city, within a half mile of the central business districts.
• Access to Investment Incentives: A toolbox of tax credits, tax abatement, bond financing and loan programs incentivize businesses locating in Newark.

Mimeo.com, an online and on-demand document production and shipping firm, has a 75,000-square-foot data center and print production and distribution facility in the city. Mimeo.com’s products need to be packaged and shipped for just-in-time delivery around the world, and that’s only possible via cities like Newark, with access to a world-class transportation infrastructure.

The Portugal-based medical genetics testing company, CGC Genetics, located its first American outlet in Newark’s University Science Park.

Newark recently hosted the U.S./Portugal Business Development Trade Mission with Nuno Brito, Ambassador of Portugal to the USA, and Ambassador Allan J. Katz, Ambassador of the U.S. to Portugal.

The International Trade Administration (ITA) recently announced new data that shows that New Jersey’s merchandise exports increased 19 percent in 2011 compared to 2010, growing from $32.2 billion to $38.2 billion, exceeding the national average for merchandise export growth for the same period. New Jersey’s 2011 merchandise export sales increased to many top destinations, including the Netherlands (up 84 percent), Brazil (81 percent, Turkey (46 percent), Mexico (39 percent), and China (34 percent). Key merchandise export categories include: chemicals, petroleum products, computer and electronic products, transportation equipment and primary metal manufacturers.

“The companies that locate here, whether in downtown or our FTZ are selling truly innovative products and services to world destinations,” said Dudley Ryan, Vice President, CB Richard Ellis. According to Ryan, these companies are helping to advance the regional economy by creating high paying jobs and initiatives such as the U.S. National Export Initiative.

“Newark offers international companies access to the best transportation nexus on the East Coast and a gateway to the U.S. and Europe. Our infrastructure and distribution system are unrivaled. These, combined with the Foreign Trade Zone and proximity to New York and Washington D.C., makes Newark a truly attractive location for international companies seeking to invest in the U.S.,” said Richardson.

The post INDUSTRY FOCUS: Ports of Success appeared first on Business Facilities.

The growth of cloud computing is spurring increased demand for data center space in North America, according to a survey commissioned by Digital Realty and reported by Data Center Knowledge. The growing interest in cloud adoption, along with the resumption of planned expansions that were deferred due to the economy, points to robust growth ahead for the U.S. data center industry.

Ninety two percent of IT decision makers at large companies said they will “definitely or probably” expand their data center footprint in 2012, the highest number in the six-year history of the survey by Digital Realty, which is the largest operator of data center facilities. By comparison, 70 percent of respondents said they had expanded their data center operations over the past two years.

Ironically, the industry expansion comes at the same time the U.S. government is continuing its aggressive effort to consolidate its data centers, and has again increased its target for the number of facilities it expects to close, according to Federal Chief Information Officer Steven VanRoekel.

The government now expects to shutter at least 1,200 data centers, or about 40 percent of the 3,133 IT facilities identified in the latest update on the consolidation. The government is on track to close 525 data centers by the end of 2012, including 215 that were shuttered in 2011. That marks an acceleration of the project, as the administration originally expected to close 137 data centers in 2011. A listing of facilities that have been closed or are targeted for closure is available at Data.gov. However, a new $500-million data center for the Social Security Administration is expected to be built near Frederick, MD in the coming months.

Wyoming Opens Window to Data Hub

The Microsoft Corporation’s announcement to construct a $112 million data center in Cheyenne, WY marks a notable milestone in Wyoming’s economic diversification efforts, and it’s a clear sign that our state’s emerging presence on the digital industry landscape is gaining ground.

Behind the lead of Governor Matt Mead who first stated his goal to recruit data centers during his campaign, Wyoming has aggressively pursued technology as a target industry that someday may be mentioned in the same breath as agriculture, energy and tourism when talking about our state’s signature industries.

This is only possible because of the close working partnerships developed during the past six years with the Wyoming State Legislature, the governor and local economic development organizations throughout the state, as well as our relationship building efforts with technology companies and site selectors.

The Wyoming Business Council has collaborated with local economic development leaders to showcase our state’s enviable assets such as a cool climate, robust fiber, low-cost and redundant electricity and access to available shovel-ready sites that lower the total cost of operation for digital business. In addition, this local and state economic development team has worked together with the governor and the legislature to create unique incentives that set us apart in this highly competitive market.

In the case of the Microsoft decision, the result of this group effort produced an incentive package comprising up to $5 million from Governor Mead’s Data Center Recruitment funds, used at the sole discretion of the governor to entice data centers, and $5 million from a Wyoming Business Council Business Ready Communities (BRC) Managed Data Center Cost Reduction grant through applicant Laramie County.

Through Cheyenne’s local economic development agency Cheyenne LEADS, Laramie County will use the $5 million from the governor’s fund to build infrastructure to include roads, water lines, sewer work and fiber installation to lower the upfront costs for Microsoft’s selected location; Laramie County will use the $5 million BRC grant to assist with utility and connectivity costs.

In addition to the above state incentives, Wyoming offers a data center sales tax exemption. Combined with our other benefits such as no corporate or personal state income tax, and workforce development training funds, Wyoming has a compelling cost reduction incentive package that is appealing to this industry by careful design. Without these incentives and our infrastructure investments, the Microsoft project – and future projects of this caliber – would not be possible, and we must give credit to the legislature and the governor’s office for having the foresight to work with the Business Council and the local economic development community on ensuring we’re ready to compete in the digital industries.

Although Cheyenne was the final location decision, Microsoft identified Evanston, Laramie and Rawlins as very real possibilities until just months before the final decision was made. Economic development officials and local leadership in those communities worked through the same process with Microsoft as did Cheyenne LEADS, and Microsoft officials made note of the pride displayed from each community during the 10-month site selection process. The professionalism, understanding and sincerity by all communities involved made the entire state look very good to the company and made it easier for Microsoft to select Wyoming over competing states. From a local economic development standpoint, this announcement illustrates how important it is to have shovel-ready property available for economic development.

With the successful recruitment of the NCAR-Wyoming Supercomputing Center to Cheyenne in 2007 and the presence of other data centers such as EchoStar, Ptolemy Data Systems, T3Media (formerly Thought Equity Motion) and Green House Data calling Wyoming home, the recent Microsoft decision punctuates this work; but now, it’s time to go to work on the next one.

TVA Identifies 20 Sites Ready for Data Center Development

The Tennessee Valley Authority (TVA) is undertaking a Data Center Ready-for-Development Sites Initiative as part of its Megasites program.

Twenty sites in the TVA region have been identified by Deloitte Consulting as being ready for development as data centers (see map below, with full information on the sites available at datacenters.tvasites.com).

The strategy behind this program is similar to the Megasites program in that it identifies what target companies are looking for and then finds sites where much of the due diligence on those attributes has already been done. The Megasites program is a multi-year economic development effort designed to make it easier for large industries to find an optimal location that is ready for use. A third-party consultant (McCallum Sweeney Consulting) has identified locations that offer large developable acreage, have access to utilities, are close to interstate highways and railways, and can supply a plentiful labor force. Megasites help companies save time and money and reduce their risks in locating in the region.

The TVA’s web pages for the potential data center sites feature a GIS presentation of the available property as well as demographic information about the labor force available to the location and a snapshot of consumer spending and businesses in the area.

For example, TVA and Deloitte identified a 92-acre site in an industrial park in Huntsville, AL as a prime location for a future data center. The TVAsites.com web page for the site indicates that a Phase I Environmental Report already has been completed for the site, which is a vacant parcel that can be purchased.

To assess the available labor force for the Huntsville site, visitors to TVAsites.com can enter in a specific geographic radius or an estimated drive time (in minutes) and be served up a workforce report according to the specs. The same coordinates/requirements can be entered to generate customized reports on consumer spending and related businesses in the target location.

The post INDUSTRY FOCUS: Data Centers – Growing by Gigabytes appeared first on Business Facilities.

Waupaca Mill

By Ed Shulman
From the March/April 2012 issue

With bailed-out industry giant GM back on top and the recovery picking up steam, industry analysts forecast 2012 global light vehicle assembly to be 83.5 million units, a 10 percent increase compared to 2011 estimates of 75.9 million units.

General Motors has claimed the number one spot in the automotive industry just two years after GM filed for bankruptcy. According to media reports, the automaker has topped sales in every corner of the globe, managing to increase profits despite years of financial struggles.

GM suffered its share of ups and downs over the past decade, but saw the worst of its struggles in 2009 when it filed for bankruptcy. In an attempt to restructure the company, GM let go of several of its top lines, including Pontiac and Saturn, in addition to selling its subprime auto loan business.

Since that time, the company slowly moved toward recovery. It has been able to repay more than half of its TARP funds received from the government, while also allowing GM to reenter the subprime business and pushing to sell shares on the New York Stock Exchange.

Now, after selling 640,000 more cars and trucks than it did in 2010 and earning more than $7 billion in profits in three quarters last year, the company pushed back to the top of the auto industry in 2011, surpassing last year’s winner, Toyota.

Toyota took the spot as the top automaker in 2010, but suffered massive losses after the tsunami in Japan devastated many of the company’s plants, impacting its ability to build cars and ship parts to other automakers around the world. Now, experts say it the largest Japanese automaker is recovering from its losses and gearing up for a strong year.

Ford is also among the competition GM faces with sales up 11 percent in the past year. With that said, auto consumers may see a rise in incentives and deals as automakers contend for the top spot.

Autofacts, PwC’s automotive forecasting service, forecasts 2012 global light vehicle assembly to be 83.5 million units, a 10 percent increase compared to 2011 estimates of 75.9 million units. Although complex macroeconomic and geopolitical issues remain, strong vehicle production in the first half of 2011 is driving assembly volumes to increase over prior estimates. Chinese and Indian markets are driving significant growth in the baseline global assembly estimates.

Japan’s auto industry is fighting back with the majority of the country’s vehicle manufacturers and suppliers expected to be back to full tilt by September. Japan’s faster than anticipated recovery has also contributed to the upward revision of the global assembly estimates.

The country has been rebuilding its industry over the summer months and is now on course for an output of 8.4 million units for 2011—some 221,000 more than had been previously expected. Autofacts also predicts that globally, total light vehicle assembly will be 75.9 million units in 2011, nearly a 6 percent increase from 2010 levels.

“While economic uncertainty continues, light vehicle production thus far is demonstrating resilience with stronger than expected growth,” said Calum MacRae, PwC’s lead automotive analyst, Autofacts. “Perhaps the most significant element to the third quarter forecast is the faster than expected recovery of the Japanese automotive value chain, with most manufacturers expecting full capacity to be restored by September.”

Inflationary fears and registration quotas have contributed to a slowdown in vehicle sales growth in China. In response, the Chinese government has announced new incentives, which could boost demand in the second half of the year from the 5.8 percent recorded in the first half. Europe’s sales environment remains weak to mixed across primary markets, but production is being supported by strong export growth to China, Russia, Turkey and the US.

China’s coastal cities are coping with severe traffic congestion and Beijing, by example, has limited new car registrations to only 240,000 in 2011. Automotive sales in India have also moderated. As of June 2011, the Indian market has reported 16 percent annual growth compared with 34 percent in 2010.

Sluggish economic growth, weak consumer spending and Japanese inventory shortages have caused a mid-year sales slump in the US market. While North America’s automotive supply chain continues to address capacity constraints it is still on course for a 2011 production forecast of nearly 13 million units, a roughly 1 million unit increase from 2010.

Perry County: Bringing the Right Components

Finding balance is often a never-ending quest that consumes lifetimes. For the lucky few, that quest is realized when the right components are brought together to achieve the desired goal.

The balance that has been achieved in Perry County, IN, was forged by dedicated visionaries who committed their efforts to bringing together key partnerships for the ultimate goal of balancing the abundant natural resources with a progressive business climate. The end result is the ability to execute successful, world-class business operations in an atmosphere that lends itself to breathtaking views, outdoor adventures and tranquility. For outside observers, an afternoon cruise through the tree-lined hills and valleys can occasionally result in a glimpse of a high-tech production facility that is in the midst of competing on a global scale.

“There were a multitude of locations that would have worked along the river,” commented Bruce Tesch, Plant Manager of ThyssenKrupp Waupaca, an iron foundry. “This community just jumped forward and provided everything that ThyssenKrupp was requiring.”

Some of this rural county’s business successes are directly related to its location. Sitting in the heart of the United States near the geographic center of North America and the median center of the US population, Perry County sits on the banks of the Ohio River, the nation’s busiest waterway. The county’s proximity to two commercial airports, coupled with interstate access, port facilities and railroad services make it ideally situated to meet the transportation needs of any commodity-based business.

As the epi-center for gray and ductile iron products, much of Perry County’s productivity focuses on automotive and heavy construction components and component parts. ThyssenKrupp Waupaca’s Plant 5 operation features the largest vertical molding machine in the world to aid with production of parts for end-users including Toyota, Ford, Caterpillar, Chrysler and Cummins. Webb Wheel Products (an OEM producer of components for the heavy truck industry) and ATTC Manufacturing (a supplier of more than 80 component parts to Toyota for use in 10 different vehicles) both utilize advanced robotic machining equipment in their processes.

This advance manufacturing environment helps these companies to produce the next generation of products faster, cheaper and cleaner. As manufacturing changes with newly adopted methods of production, the Perry County business community promotes the advancement of new, technologically enhanced methods of production. In addition, employees are encouraged to offer their input into processes and career enhancement, both of which further improve the company’s competitive advantage.

Those businesses that have chosen to come and stay in Perry County have done so to take advantage of the array of economic opportunities balanced with attractive living options available for employees and their families. At the end of their work-day, employees of these companies have the opportunity to participate in an assortment of activities including family–oriented events, outdoor-recreation in the Hoosier National Forest, and water sports on the Ohio River.

Companies in Perry County have had the opportunity to benefit from the strong partnerships that were established years ago by those visionaries. The community’s commitment to working with companies to help to insure each business remains competitive in a global economy manifests itself on the first day of contact.

“Perry County really rose to the top from the standpoint of the assistance they gave to making it come together and the real strong pro-active nature they took and the clear interest in having the business,” noted Kent Finkbiner, President of Webb Wheel Products who located in the County in 2004.

Most recently the Perry County Development Corporation, the county’s lead economic development agency, addressed a warehouse need of a local business. The corporation identified an older building in the downtown Tell City area and rehabilitated the building with the end result being a 52,000 square foot warehouse with three loading docks. The business now has improved efficiencies and closer scrutiny of its inventory.

With a population of nearly 20,000 people, Perry County offers the charm of a smaller, rural community combined with the progressive corporate attitude and sophisticated infrastructure usually found in larger metropolitan areas. Leadership in Perry County proactively works to grow the regional economy through business attraction, retention and expansion; through encouraging and supporting entrepreneurs; and through providing government and workforce advocacy. All of this is done with the ultimate goal of positively impacting each business’ bottom line expenses while maximizing employee income and overall quality of life.

To further explore the benefits of conducting business in Perry County the Perry County Development Corporation has posted company testimonials online.

Harrison County: Epicenter of Supplier Network

Given the strong presence of Ford Motor Company in Louisville, KY, Harrison County is an ideal location for suppliers to the automotive industry. Recently, ICON Metal Forming, a metal stamping company in Corydon began hiring to make parts they will produce for the new Ford Escape that will be made at the Louisville Assembly Plant about 35 miles away in Louisville. ICON presently employs 300 workers. The Economic Development Corporation and the County Government have assisted ICON with expansion projects in the past by supplying incentives to train workers and reduce the company’s property taxes.

The incentive programs offered by the ED Corporation are quite flexible and can be customized to meet the individual needs of the manufacturers. Assisting companies in the automotive industry gives the community an opportunity to “upskill” our labor force, as was described in Business Facilities’ Economic Development Deal of the Year cover story in our Jan/Feb issue, which named Kentucky’s automotive partnership with Ford Motor Company the Gold Award winner.

This rural community has outstanding highway access on I-64 just 25 miles west of Louisville’s city center. Recent investment in infrastructure projects has allowed Harrison County to expand the sewer and water capacities available and has brought improved roadways to better accommodate business development. The Economic Development Corporation is marketing a Business Park that is owned by the Chamber of Commerce and is certified Shovel Ready by the State of Indiana. The Harrison Rural Electric Cooperative supplies electricity to the industrial area and provides outstanding dependability with two substations within a mile of the Business Park. Sites have been considered by several suppliers to Toyota Motor Corporation, which has assembly plants 90 miles west in Princeton, IN and 90 miles east in Georgetown, KY.

The property has attracted Howard Packaging; a California based plastic injection molding company that makes bottles for Lucas Oil Products, which established a production facility and distribution center in Corydon in 2002. Lucas Oil has grown considerably since locating here and produces about 80% of its world-wide oil and fuel additives at the Corydon facility. The Business Park still has 60 acres remaining that is Shovel Ready and nearby parcels can also be developed for additional expansion.

Because of its ideal location Harrison County has been one of the fastest growing counties in Indiana over the past 30 years. The aggressive approach to creating jobs has helped to improve the overall standard of living for the existing residents, has kept property tax rates among the lowest in the state and the population of the county continues to grow even during challenging economic times.

The post INDUSTRY FOCUS: Automotive Shifts Into High Gear appeared first on Business Facilities.

Ardmore, OK

By Dominique Cantelme
From the March/April 2012 issue

Aerospace refers to the industry that researches, designs, manufactures, operates and maintains vehicles moving through air and space. A world leader in advancing science and technology, the diverse field encompasses commercial, industrial and military applications and in most industrial countries is a cooperation of both public and private industries (e.g., U.S. government runs NASA to explore and research while companies like Boeing may manufacture their aircrafts).

The U.S. is home to the world’s largest aerospace industry. A new report by professional services network company Deloitte Touche Tohmatsu Limited (DTTL), entitled The Aerospace and Defense Industry in the U.S.: A financial and economic impact study, which was commissioned by the Aerospace Industries Association (AIA), demonstrates the irreplaceable impact the aerospace and defense industry has on America’s economic and national security and emphasizes the industry’s support of more than three million American workers. The research conducted shows that aerospace and defense generated $324 billion in sales in 2010, contributed 2.23 percent to the GDP, had a direct payroll of $84 billion, paid federal and state cash income taxes of $38 billion and exported $90 billion worth of goods. Aerospace and defense also is the number one contributor to the nation’s positive trade balance at a net $42 billion.

“Aerospace is a bright spot in a bleak economic landscape,” says Marion Blakely, president and chief executive officer of the AIA. Aerospace and defense contributes to national security, delivers humanitarian aid, prompts new technology to help reduce casualty rates in armed conflict, brings safer and more fuel efficient jet transportation and provides groundbreaking technology to connect society with advances in digital communications. In addition, aerospace and defense workers enjoy one of the highest average wages compared to many other industries.

Dayton: Forging the Future of Aerospace

The Dayton Region is in a period of profound transformation and has a powerful opportunity to reinvent itself. The aerospace industry has the potential to forge a bright new future for the region. At the heart of this economic engine are Wright-Patterson Air Force Base (WPAFB) and Springfield Air National Guard Base (SANG). Wright-Patterson is the largest single site employer in Ohio, with a direct, annual economic impact of more than $5 billion per year.

Springfield ANG is increasing the extensive capabilities of the National Air and Space Intelligence Center (NASIC), the Department of Defense (DoD) air and space intelligence agency and will be a cornerstone in the region’s unmanned aerial systems (UAS) strategy. The fiscal injection into the local economy and the strategic missions of these installations offer an unprecedented foundation to build upon. The academic and private-sector aerospace capabilities that have been developed in the region as a result of Air Force research, development, test, evaluation and collaboration have positioned the Dayton Region to be a national leader in aeronautics and aerospace systems. The goal is to reestablish leadership of the United States in the world of aeronautics research, development, technology and manufacturing and set the national aerospace agenda, while rebuilding Dayton’s regional economy.

Currently no aircraft are being manufactured in Southwest Ohio, but the Region is a national leader in the aircraft manufacturing supply chain. The combined strengths of both Dayton and Cincinnati create a nearly complete supply chain within just a 50 mile radius. Of the top 30 manufacturing industries that the aircraft manufacturing sector requires for aircraft production, 24 are concentrated in Southwest Ohio. In these same 30 industries in the aircraft manufacturing supply chain, Ohio ranks third in the nation in the number of jobs and capacity, with only California and Texas offering greater capacity, but at significantly higher wages.

Unlike other communities that solely focus on manufacturing aircraft, the Dayton Region leads aerospace research and development, as well. Home of the Air Force Research Laboratory, the Region also houses R&D contractors and small businesses that focus on the technological needs of the Air Force and the aerospace industry.

Ardmore, OK: Location, Capacity

Ardmore, OK is ideally located to serve the Texas/Oklahoma and South Central markets. With many distribution centers such as Best Buy, Dollar General, Dot Foods, Meadowbrook Meats, Michelin and others—in addition to its proximity to Interstate 35 which runs through the west side of Ardmore and provides easy transportation access to points north and south—Ardmore has become a major shipping and distribution hub.

The Ardmore Industrial Airpark, formerly an Air Force Base, is situated 16 miles northeast of Ardmore. From Interstate 35, take State Highway 53, a super-wide improved two lane, nine miles directly into the Airpark. The Airpark is also accessible from Ardmore utilizing the four-lane Highway 77, then Highway 53. The airstrip has two runways with landing lights, the longest a 150 ft. x 9,000 ft. (plus a 500-foot overrun). The airport features full instrumentation including glide-scope; adequate flight space for flight testing; an FAA-staffed control tower; parking capacity for 100 commercial-sized aircraft; an airplane wash rack and sewer facilities; a fueling and defueling station; 24 hour fire, rescue and security systems; and a full service FBO. A rail spur from the BNSF main line serves the Ardmore Industrial Airpark.

The post INDUSTRY FOCUS: The “Space” That Keeps Us Grounded appeared first on Business Facilities.

Port Freeport

By Dominique Cantelme
From the January/February 2012 issue 

There are many specific definitions of logistics but they all generally mean the same thing—a process needs to be in place to move materials, services, people and/or information from point A to point B and possibly C and D or more. It should be done in a cost-effective, timely, safe and secure fashion in order to be deemed successful and efficient.

The Council of Supply Chain Management Professionals (CSCMP) released their 22nd Annual State of Logistics Report delivered by author Rosalyn Wilson. The report offers insight into the state of the logistics industry over the course of the last few years. Specifically that:

• Logistics costs increased 10.4 percent in 2010 after dropping in both 2008 and 2009, and logistics costs as a percent of nominal GDP moved back up to 8.3 percent.
• Inventory carrying costs increased 10.3 percent in 2010, due to higher costs for taxes, obsolescence and insurance, which were offset by declines in inventory carrying rates and warehousing costs.
• Transportation costs increased 10.3 percent in 2010. Motor carriages, which comprise 78 percent of the transportation segment, rose 9.3 percent, while air, rail, water and pipeline combined increased an average of 15.4 percent in the same period.

The International Air Transport Association (IATA) referred to 2010’s results as “the best year of the decade” with an $18 billion profit in air freight; however, only a 3.2 percent profit margin was realized. Air carriers started to see business dwindle in the second half of 2010 and into the first half of 2011 as customers, facing higher transportation costs due to rising oil prices, went with cheaper options whenever possible. IATA expected overall profits for the global airline industry in 2011 to be $6.9 billion; a net income drop to $3.5 billion is expected in 2012.

While ocean traffic through U.S. ports declined in 2010 (even though most top ten ports registered a rise in TEUs moved), costs for the water sector went up 14.1 percent. Prior to the downturn, the sector had ordered mega containerships, nearly doubling its available volume. Having received the new vessels through 2009 and 2010, ocean carriers have had to deal with excess capacity and weakening demand.

The railroad industry appears to be back on track. The Association of American Railroads (AAR) released the 2011 Edition of Railroad Facts. The publication notes that in 2010 rail traffic began to recover from recession-related decreases of 2009, which helped railroads bring equipment back into service and hire employees. According to a Progressive Railroading interview with

Norfolk Southern Railway’s Chairman, President and CEO Wick Moorman, its freight customers would agree with the company’s outlook that “they don’t see extraordinarily robust growth…in 2012, but neither do they see anything which would portend a downturn.” He added, they “are anticipating a stable economy that continues to grow…[at] a somewhat reduced pace.” In interviews with Progressive Railroading, railway CEOs advise that the key factors to impact traffic growth next year likely will be consumer confidence and employment levels, but executives also seem to think the worst has passed.

Less than truckload (LTL) shipments (AKA motor freight) range from 110 to 15,000 pounds and are usually palletized, shrink-wrapped and packaged for a mixed-freight environment. This $27.5 billion sector has not been profitable recently due to overcapacity, high overhead costs and losses from some of its biggest players. Shipments larger than about 15,432 pounds are typically classified as truckload (TL) freight. These shipments have exclusive use of one larger trailer rather than share space on a smaller LTL trailer. The TL sector, which supplies some 95 percent of capacity in the $403 billion for-hire intercity trucking industry, is finally on the rise after setbacks in 2008, 2009 and 2010.

A Logistics Management article notes that, “according to analyst consensus, trucking, rail and intermodal rates are forecasted to inch up by 2 percent to 3 percent over the course of 2012. Ocean and air cargo providers are seeking similar improvement, but will encourage shippers to sign long-term contracts designed to give carriers sustainable returns to cover their capital investments.” The article adds that, “the biggest rate jump…has…been announced by parcel shipping players—and shippers say they’re ready to live with at least a 5 percent hike when going express air and ground.”

Companies looking to build a durable business need to continuously offer added value. The procedure can be more or less complicated for a business depending on where it is physically situated, logistically speaking. Setting up facilities in the right location can mean a world of difference to a company’s success and the following locations can help with that precise positioning.

I-69 is Nearing Completion in the Hoosier State

Construction of the extension of I-69 in southwestern and south central Indiana continues with a vengeance. The Indiana Department of Transportation (INDOT) has announced that 107 miles of the southwest portion of Indiana will be open by the end of 2012. The new interstate will provide an important north/south corridor connecting two interstates that run east and west: I-70 and I-64. In the longer term, future construction of I-69 in Kentucky, Tennessee and additional southern states will extend the highway from the Mexican border to the Canadian border.

According to economic development leaders who serve this area of Indiana, the interstate can’t open soon enough.

Here are just a few of the immediate benefits to the area:

• New interstate interchanges will provide premium sites for logistics firms to locate; four new interchanges between Bloomington and Evansville will open in 2012.
• Increasing range of trade for manufacturers since I-69 will make it easier and faster for producers and manufacturers to tap a larger pool of raw materials.
• Decreased commute time for workers.
• Safety impact on rural communities—separate routes for interstate and local traffic means school buses, tractors and combines will no longer share roads with commercial trucks and long-distance commuters.
• Technology and retail infrastructure for rural communities; rural areas will benefit from the technology and infrastructure growth.
• Easier access to healthcare facilities.

David Cox, former Daviess County Economic Development Commission Director, discussed Perdue Foods in Washington, Indiana. “Perdue needs an efficient supply line, both into its facilities and out. Perdue is a meat processing company, and a huge consumer of corn.” Another nearby food processor who will be positively impacted by I-69 is GPC. “Among their (GPC’s) products is Maltrin, a corn syrup solid used in a variety of sweeteners.” Perdue and GPC are only two of several manufacturers who will be able to enhance their productivity thanks to improvements in interstate access.

Cox also referenced Crane Naval Weapons Support Center, Indiana’s military munitions storage and electronics manufacturing facility. “Reduced transportation costs and access to the interstate mean Crane can bid lower and provide a higher quality product.” The U.S. Hwy 231/I-69 interchange will be located about three miles from the Crane facility gate. Westgate at Crane Technology Park is already developing into a location of choice by defense contractors, in part, because of the promise of easy access to Crane via I-69.

Paul Lake, executive director of the Pike County Economic Development Commission, says they’ve been “blessed with an excellent state highway infrastructure, but I-69 provides us with a new high speed route to reach Bloomington and Indianapolis. Businesses have embraced a ‘just in time’ delivery system, and maneuvering though stoplights and traffic is not conducive to good business.” Lake cites coal as a staple product of southwest Indiana. “As the cost of transportation decreases, local manufacturers can move product more efficiently, and at a more competitive rate. I-69 will connect us to the world marketplace.”

Lake added, “If you look at a 500 mile radius, there are over 50 million people. That circle touches Nashville, Atlanta, St. Louis, Indianapolis, Chicago and Detroit—significant markets that the interstate will draw us closer to.”

Todd Mosby, president and CEO of the Gibson County Economic Development Commission, referenced their Toyota auto manufacturing plant in Princeton. “North American Lighting, a supplier of the Toyota plant, is building a new facility in Warrick County’s Industrial Park on the promise, in part, of how simple I-69 will make it to conduct business.”

Many of the sites along the expanded I-69 interchanges will be served by rural electric co-operatives, with Hoosier Energy as the power supplier. On this, Cox said, “Hoosier Energy’s partnerships have allowed smaller communities to attract more significant manufacturing business than they could otherwise.” Through the rural electric cooperatives in the region, the needed site development at the new I-69 interchanges can be promoted and enhanced. Several state-certified shovel-ready sites have already received an assist through the local REMC’s.

New interstates are not constructed very often in the U.S. anymore, so the emergence of I-69 during the opening years of the 21st century is an exciting opportunity to see the modern logistics industry get in on the ground floor to take advantage of newly opened interstate interchanges and adjacent developments. Indiana is the epicenter for this exciting new development—all 107 miles of it opening in 2012.

Topeka: Center of the Heartland

Right in the heartland of the U.S., Topeka, Kansas is the perfect place for transport. Direct access to a 12,800-foot runway with a load bearing capacity of 300,000 tons, major interstates (I-70 and I-35) and railroad arteries allow for inexpensive, simple shipment and delivery to business sites.

Whether it’s bringing raw materials in or shipping finished product out, Topeka’s central location makes for timely and cost-effective delivery throughout North America. Within one day, goods shipped by truck reach 25 percent of the U.S. population, reaching 90 percent by day two. In addition to convenient access to major roadways, Topeka offers rail service and an air logistics facility at Forbes Field, with Kansas City International Airport only one hour away.

Because Topeka is conveniently located right in the middle of everywhere, products make it to customers quickly and efficiently. The city also has available sites, low energy costs, aggressive development incentives and a highly skilled workforce. If a company wants to ship all over America, Topeka, Kansas is a great place to be.

• Two large, shovel ready Commerce Parks with BNSF rail-served sites
• Major North-South, East-West Interstate transportation network
• Forbes Field Air Logistics Facility offers direct access to two runways (12,800 feet and 7,000 feet)
• Foreign Trade Zones are “user friendly” site specific and allocated on an individual company basis
• Region has five intermodal yards and is served by two Class I rail companies, BNSF and Union Pacific
• Already home to major logistics centers including Home Depot Rapid Deployment Center and Target Distribution Center
• Kansas Turnpike Authority provides the opportunity for trucks to haul multiple trailers on sections of the highway, reducing overall transportation costs
• Existing Business Program fields the needs of logistics companies in the region and offers support as they grow their operation
• Washburn Institute of Technology offers two in-depth certifications for the logistics industry workforce

For information on the ideal location for your company and how GO Topeka can help you grow, contact Dawn Wright at 785-234-2644 or dwright@gotopeka.com.

Dyersburg, TN: Gateway to the American Marketplace

Dyersburg, TN is located at a strategic point on the North American transportation grid, very near the center point of the United States population. As a result of this location, Dyersburg/Dyer County offers a number of logistical features and attributes.

Dyersburg is positioned on the interstate highway system roughly equidistant from Chicago and New Orleans, within a two-day drive by truck to 65 percent of the U.S. population. Situated on the main line of the Canadian National Railway, also halfway between Chicago and New Orleans, it provides direct rail connections from as far away as Prince Rupert Sound in Canada and Halifax, Nova Scotia. Dyersburg/Dyer County is home to Dyersburg Municipal Airport, a general aviation airport which can accommodate corporate and some commercial jets on its 5,800-foot long runway. In addition, it is only 75 miles from the World Headquarters and SuperHub of FedEx at Memphis International Airport, which has international freight and passenger service.

Dyersburg has been designated a federal Scenic Byway along the Great River Road through Dyer County for the purpose of preserving alternative travel routes with scenic views and vistas to auto travelers, runners and bicyclists throughout the United States. And its Riverfront Park is part of a newly designated federal Blueway, which connects Dyersburg to Memphis via a canoe and kayak route that begins in Dyersburg and terminates at the cobblestone wharf in Memphis. This park is within easy walking distance of the newly renovated McIver’s Grant Public Library in downtown Dyersburg. The Forked Deer River, a tributary of the Mississippi River, runs through downtown Dyersburg with a Riverfront Park currently under development that is set to include a scenic hiking trail, a Farmer’s Market, a canoe and kayak floating dock, a River Center (for study and preservation of the inland water system), a walking trail and scenic overlooks along the riverfront.

Dyersburg is served by Interstates 69, 55 and 155, as well as by US Highway 51 and US 412; the distance to I-40 is only 40 miles via US 412. The area boasts an abundant amount of telecommunications capacity, including fiber optic cable service in its industrial parks with telecommunications options provided by a number of national carriers. And the Dyersburg/Dyer County connection does not end there.

• It is located only 75 miles from Memphis, Tennessee, which has the third largest rail center and fourth largest inland port in the U.S.
• It is located on the corridor of Interstate 69, which will connect Canada to Mexico through seven U.S. states.
• Dyersburg/Dyer County has an interstate highway bridge crossing the Mississippi River into Missouri—the only such bridge between Memphis and Cairo, IL.
• The Port of Cates Landing, an intermodal river port on the Mississippi River, is now under construction only 25 miles from Dyersburg.
• The Port of Cates Landing will be a Foreign Trade Zone, and will allow barge shipments from the Gulf of Mexico via the Port of New Orleans, as well as northward along the river system.

Port Freeport: First-Class Business Opportunity

Port Freeport came into being more than 100 years ago when the first jetty system was built in Freeport, Texas. Since that time, Port Freeport has become one of the fastest growing ports on the Gulf Coast and currently ranks 16th among U.S. ports in international cargo tonnage handled. With a current channel of 45-foot depth, soon to be widened and deepened, just 3 miles from open Gulf of Mexico waters, Port Freeport offers more than 7,500 acres for future development. Port Freeport serves its customers and stakeholders through development and marketing of competitive world-class navigational capabilities, technically advanced marine and multimodal terminal services and port-related industrial facilities while achieving profits and creating jobs as a leading economic catalyst for the Texas Gulf Coast.

Port Freeport offers the following benefits: rail, highway, vessel and/or barge transportation can be seamlessly utilized; direct access to the Gulf Intracoastal Waterway, Brazos River Diversion Channel, State Highway 36, State Highway 288 and Union Pacific Railroad; only a few minutes commute from quality schools, housing and medical care and just 59 miles south of downtown Houston, Texas—the nation’s fourth largest city; surrounded by a highly qualified, technical labor pool; available existing water supply, wastewater collection, electrical distribution, gas and telephone; existence of adjacent properties that could support future growth and development; air freight service by all national carriers from multiple surrounding airports within a 60-mile radius; availability of local, high-quality trainable workforce and close proximity to universities and technical colleges; ability to manage inventory and/or manufacture duty deferred, inside the Foreign-Trade Zone; Texas is a right-to-work state, which leaves you the right to choose between union and non-union labor; and the state of Texas, Brazoria County and Port Freeport offer competitive incentives, tax credits and exemptions.

Recent developments at Port Freeport include the construction of the first phase of Port Freeport’s Velasco Terminal, adding further cargo-handling capabilities at the Port, with a new 800-foot-long dock and 20 acres of backlands, promising an eventual offering of 2,400 feet of berthing and more than 90 acres of supporting land.

Meanwhile, the Port continues to work in conjunction with federal and state authorities to advance the project to deepen the Port’s channel to 55 feet from its present 45 feet, plus substantially widen the channel as well. It is hopeful that the seven-year feasibility study will indicate, as have preliminary analyses, that benefits of the channel project should exceed its $300 million cost.

With so many developments pointing toward growing diversified activity at Port Freeport, the people look forward to the Port expanding upon its already impressive status as an economic cornerstone of the community and region—a dynamic force directly and indirectly responsible for nearly 60,000 jobs and having an overall annual economic impact in Texas of $10.2 billion.

Unlike many ports, which are running out of available land, Port Freeport boasts thousands of acres of currently undeveloped tracts, all proximate to the waters of the Gulf of Mexico. The Port is a mere three miles—45 minutes by ship—from the open sea.

The Foreign-Trade Zone Program adds to Port Freeport’s appeal. Since established in 1988, Port Freeport’s Foreign-Trade Zone No. 149 has helped American companies involved in global commerce to save money on the products they import into the U.S. through deferral, reduction and/or elimination of Customs duties assessed on foreign merchandise, and port officials have been fielding a lot of inquiries about the FTZ of late.

Port Freeport Managing Director Phyllis Saathoff, a past president of the National Association of Foreign-Trade Zones, pointed out that there may be no better time for businesses engaged in international trade to explore the benefits FTZ No. 149 has to offer.

“Especially in challenging economic times,” Saathoff said, “we are pleased to be able to offer businesses in the region another tool to stay competitive and reduce costs.”

Those seeking additional information are encouraged to visit Port Freeport’s web site or contact Mike Wilson at 1-800-362-5743, ext. 4325 or wilson@portfreeport.com.

Wheeling, IL: Regional Winner

Wheeling, IL enjoys an infrastructure most communities would envy. Located in Chicago’s north suburban market, it is in the heart of the Chicagoland area, a region companies value for its central location to markets across the nation. With two interchanges and direct entry onto I-294 (Tri-State Tollway) and Illinois Route 53, Wheeling businesses enjoy easy roadway access to and from destinations throughout the Midwest. Rail service in the community provides freight service to its business parks, and commuter service to the Wheeling Metra train station, offering convenient transit options for the region’s workforce.

The Village is nine miles north of O’Hare International Airport and in conjunction with the City of Prospect Heights, owns Chicago Executive Airport (formerly Palwaukee Municipal Airport). Chicago Executive is a low-cost/no delay alternative to O’Hare for business travelers and for the shipping of airfreight. It is the third busiest airport in Illinois—handling nearly 200,000 private and corporate flights each year—and offers a flight training school and an additional transportation option for executives in the region.

Chicago Executive Airport has begun a series of multi-million dollar improvements, including runway enhancements and new hangar construction, to hold its position as the location of choice for major companies that maintain private fleets, as well as for individual pilots. The Village recently encouraged development of a new 40,000-square-foot corporate office and hangar, which will be a significant property tax and traffic generator for the community and has led to additional development inquiries regarding available land at the airport.

Wheeling also is experiencing community-wide investment and redevelopment in its industrial, retail and office markets and its Economic Development staff is available to discuss current and upcoming development opportunities with prospective businesses and investors. The local government administration is aggressively encouraging the development of new retail and industrial businesses and has implemented a number of incentive and financing programs to encourage its continued growth.

In the heart of Wheeling’s Town Center TIF District, the Village purchased a 10-acre former Wickes furniture site on Dundee Road, directly adjacent to the Metra commuter train station. The Village anticipates a $120 million project with a large anchor store, smaller retailers, two residential towers, a greenway and parking. Plans are still being worked on but the town center is expected to open by summer 2014.

The Village’s Economic Development Department regularly monitors local real estate conditions and maintains an updated list of available buildings and land development opportunities. The Village encourages inquiries about site availability and has professional staff at hand to assist your company in finding a home for your business in Wheeling. Visit www.wheelingil.gov for more information.

Welcome to Hendricks County

With a location that is within a days drive to so many of the nation’s population centers, an extensive transportation network, a skilled workforce and an outstanding quality of life, Hendricks County, IN has become one of the nation’s premier business locations with accessibility second to none.

All kinds of businesses, from service providers to steelmakers, have found a supportive, productive environment in Hendricks County. Local government officials understand the value healthy businesses bring to communities, and the community’s workforce is skilled and enthusiastic.

Hendricks County’s proximity to the Indianapolis International Airport and FedEx, along with interstate and rail access has been a key factor in the growth of three of the county’s most active business sectors—logistics and distribution, motorsports and life sciences. This location has been able to combine the many resources available to those industries in central Indiana with an extraordinary quality of life and an abundance of highly talented people.

There is an astounding 28 million square feet of prime distribution center space under roof in Hendricks County, which is designated as an Alternative Foreign Trade Zone. There also is an abundance of open land, allowing you to construct facilities to meet your own specifications.

Hendricks County provides fast, easy connections to Interstates 65, 74, 70, 465 and 69, putting them less than a one-day drive from major population centers such as New York, Chicago, St. Louis, Dallas, Cincinnati and Atlanta. Its location allows overnight trucking access to more than half of the nation’s population. In addition, the county is improving access to the Interstate network with the Ronald Reagan Parkway, which will provide direct links between Interstates 65, 74 and 70; the CSX Avon yard; and Indianapolis International Airport, bypassing the city.

Hendricks County is adjacent to the new Indianapolis International Airport, which has extensive international air cargo operations. The airport is also home to the 2nd largest FedEx hub, so critical shipments can travel from your loading dock to the plane in a matter of minutes. Corporate aircraft can travel quickly in and out of Hendricks County Airport-Gordon Graham Field in Danville, as well as nearby Eagle Creek Airpark, an ILS-equipped facility located just east of Brownsburg.

Hendricks County is at the center of the CSX railroad network of more than 1,700 miles in Indiana. The CSX rail yard in Avon offers intermodal and bulk transfer services, including regular service to West Coast ports. That gives local companies easy connections to obtain raw materials and ship finished goods worldwide. The southeast corner is also served by RailAmerica’s Indiana Southern Railroad, with connections throughout the southwestern part of the state.

A key resource for companies doing business in Hendricks County —or who are thinking about locating there—is the Hendricks College Network. This non-profit connects local employers and residents with Indiana’s wealth of educational and workforce development resources.

Through one-on-one guidance; success workshops; local access to university classes, programs and resources; onsite business training and workforce development; and community support, the Hendricks College Network provides the path to success at any point from GED to PhD. The Network’s staff is experienced at helping employers and individuals overcome obstacles by identifying opportunities available through more than a dozen colleges and universities.

Their efforts include helping employers develop specialized training programs for employees. As a result of the Network’s work, Ivy Tech Community College, Vincennes University, Trine University and Indiana Tech have all launched local campuses and programs to serve Hendricks County residents and companies.

Joplin, MO: Center of Activity

For companies seeking a central location that reaches numerous major metro areas, excellent transportation connections and a capable labor force, Joplin, MO is a great place to locate.

The Joplin Metro area in southwest Missouri is in the center of North American markets. Major metros such as Dallas, Kansas City, St. Louis, Tulsa, Little Rock and Memphis are just hours away. Transportation to those markets is efficient, thanks to Interstate highways and substantial rail connections. Commercial air service is available at Joplin Regional Airport and three other major airports within 90 minutes drive time.

Companies in the Joplin Metro area benefit from a productive, available labor pool of more than 93,000 people. Missouri Southern State University in Joplin offers a broad range of standard and business-specific classes, and a strong industrial technology program. Crowder College is a source for customized technical training. Overall, between the Joplin schools and MSSU, more than $100 million has been spent on educational facilities.

Joplin’s quality of living is enhanced with two major regional medical centers, more than 150 restaurants and a wide variety of retail from locally owned shops to the 114-store Northpark Mall.

With Wal-Mart’s headquarters in nearby Bentonville, AR (just 45 miles away), Joplin is well positioned geographically to serve as a distribution center for suppliers who have a directive to provide just-in-time deliveries. Joplin is located within two hours of six of Wal-Mart centers, which gives the region a logistics advantage for supplying the Wal-Mart system, the largest retailer in the U.S.

Joplin has an excellent location for distribution based on the population within 150 and 250 miles. A market of 5.2 million people can be reached within a 150-mile radius of the Joplin area. Among its competitors within that radius, Joplin’s population is the largest. The population in the local market has as much of an influence on distribution costs as the overall population within the distribution radius, as it is far cheaper to distribute to local customers than to customers that are at least two hours from the distribution center.

The Joplin Metro area’s position for serving national markets is nearly as advantageous as Chicago or Kansas City. Interstates 40 and 44 (east-west) and US Highway 71 (north-south) connect to every region in the country. Four airports within 110 miles serve the region, providing commercial and cargo service to markets throughout the world. Two Class 1 and one local railroad are important parts of the transportation system. Both UPS and FedEx offer daily early morning deliveries in Joplin and Neosho through their regional hub in Springfield, MO.

The Joplin area already has several back office operations that have prepared a large pool of full- and part-time workers in this industry. Companies such as La-Z-Boy, General Mills and Owens-Corning transport their finished products from the area.

The post INDUSTRY FOCUS: Ships, Planes, Trains and Automobiles appeared first on Business Facilities.

With 327 official ports of entry—including seaports, airports and land border locations—the U.S is the largest trading nation in the world for goods and services. Ports provide the link for getting goods to consumers and transporting U.S. made products overseas for export. It is here that Customs and Border Protection (CBP) enforces the import and export laws and regulations of the U.S. federal government and conducts immigration policy and programs. Officers accept entries of merchandise, clear passengers, collect duties and enforce various provisions. Ports also perform agriculture inspections to protect the country from potential carriers of animal and plant pests or diseases that could cause damage to America’s crops, livestock, pets and the environment.

United States international export and import sums for goods and services have been significant. 2009 exports totaled $1.6 trillion and imports $1.9 trillion while 2010 exports reached $1.8 trillion and imports $2.3 trillion. This year’s numbers look to be similar with 2011 January to March exports alone reaching $505.2 billion and imports $645.8 billion. Major category service imports and exports include travel, royalties and license fees and other private services. The March 2010 ($150.3 billion) to March 2011 ($172.7 billion) increase in exports of goods reflected increases in industrial supplies and materials ($9.9 billion); capital goods ($4 billion); foods, feeds and beverages ($2.4 billion); automotive vehicles, parts and engines ($2.4 billion); and consumer goods ($0.7 billion).

There are 361 commercial seaports serving the U.S., the largest being Los Angeles, Long Beach and New York/New Jersey. Ports are found along the Atlantic, Pacific, Gulf and Great Lakes coasts, as well as in Alaska, Hawaii, Puerto Rico, Guam and the U.S. Virgin Islands. They are gateways to domestic and international trade with more than 3,100 publicly and privately owned cargo and passenger handling facilities. Established by enactments of state government, public port agencies develop, manage and promote the flow of waterborne commerce. They act as catalysts for economic growth, and depending on the individual port facility, may accommodate anything from barges, ferries, recreational watercraft, passenger ships and ocean-going cargo. Ports also play a role in national security by supporting the mobilization, deployment and resupply of U.S. military forces.

The increasing demands placed on waterborne transportation have been addressed through billions of dollars worth of port improvements. Part of the rationale to update and modernize facilities stems from the significant benefits ports contribute to local and regional economies. U.S. ports and their harbors and the industries located within them help form a vital economic interface between the U.S. and the world. In addition to port sector jobs with above average wages, U.S. businesses related to waterborne commerce contributed more than $3 trillion to the U.S. economy and almost $213 billion in federal, state and local taxes—seaport activities alone accounted for $31.2 billion.

The U.S. Foreign Trade Zone (FTZ) program has been a critical tool in helping U.S. ports remain a strong economic force in the global community. The program was created in 1934 with the goal of helping businesses in the U.S. stay competitive with foreign manufacturers and suppliers. According to the National Association of Foreign Trade Zones, a not-for-profit trade association, there are currently 256 General Purpose Zones and 498 Subzones in the United States (including Puerto Rico). They handle almost $500 billion worth of merchandise annually.

Located in or near a U.S. Customs Port of Entry, FTZs can benefit companies in many ways. Regardless of proximity, foreign and domestic merchandise in these areas are considered to be outside of “Customs territory.” This means that if the final product emerging from a FTZ is exported, no U.S. customs duties or excise taxes are levied. If the product is imported into the U.S., Customs duties and excise taxes are due only at the time of transfer from the FTZ to U.S. consumers.

Once received at a FTZ, goods can be assembled, tested, sampled, relabeled, repaired, stored, salvaged, processed, destroyed, mixed, repackaged, manipulated and manufactured (with special approval) before entering U.S. commerce. Therefore, just like the duty on a product manufactured abroad and imported into the U.S. is paid at the rate of the finished product rather than that of the individual parts, materials or components, so is the duty on merchandise made in a U.S. FTZ. If a product never enters the U.S. market, no duties or taxes are paid—there is no time limit on how long merchandise can remain in a zone.

Businesses in a FTZ may see a reduction in duties on labor, overhead and profit. They also can be granted special privileges, including direct delivery, to substantially reduce importation costs and increase supply-chain efficiency. Direct delivery provides for imported shipments to move directly from the port of unloading to a U.S. manufacturing or distribution facility in-bond, eliminating certain types of delays that can be associated with Customs entry at the port. Full security reviews are still in place at the port and are supplemented by additional security at the FTZ to complement government efforts to secure international cargo. This can result in lower inventory levels and expedited movement of goods to and from the zone.

FTZ companies will also see reduced fuel costs, reduced transportation surcharges and improvement of container transportation capacity.

Benefits can be seen on other sides as well.

The FTZ program directly supports hundreds of thousands of U.S. jobs. And while the U.S. government incurs a reduction in Customs duty revenue by the use of FTZs, it more than makes up for it by the income tax gained from direct and indirect jobs FTZs help to create and retain. In addition, local governments benefit from sales and property taxes.

U.S. ports are playing a major role in the current economic recovery. There has never been a better time for companies to locate their business in a FTZ at U.S. ports.

Port Freeport: Place for Business Opportunity

Port Freeport came into being more than 100 years ago when the first jetty system was built in Freeport, Texas. Since that time, it has become one of the fastest growing ports on the Gulf Coast and currently ranks 16th among U.S. ports in international cargo tonnage handled. With a current channel of 45-foot depth, soon to be widened and deepened, just 3 miles from open Gulf of Mexico waters, Port Freeport offers more than 7,500 acres for future development. Port Freeport serves its customers and stakeholders through development and marketing of competitive world-class navigational capabilities, technically advanced marine and multimodal terminal services and port-related industrial facilities while achieving profits and creating jobs as a leading economic catalyst for the Texas Gulf Coast.

Port Freeport offers the following benefits: rail, highway, vessel and/or barge transportation can be seamlessly utilized; direct access to the Gulf Intracoastal Waterway, Brazos River Diversion Channel, State Highway 36, State Highway 288 and Union Pacific Railroad; only a few minutes commute from quality schools, housing and medical care and just 59 miles south of downtown Houston, Texas—the nation’s fourth largest city; surrounded by a highly qualified, technical labor pool; available existing water supply, wastewater collection, electrical distribution, gas and telephone; existence of adjacent properties that could support future growth and development; air freight service by all national carriers from multiple surrounding airports within a 60-mile radius; availability of local, high-quality trainable workforce and close proximity to universities and technical colleges; ability to manage inventory and/or manufacture duty deferred, inside the Foreign-Trade Zone; Texas is a right-to-work state, which leaves the right to choose between union and non-union labor; and the state of Texas, Brazoria County and Port Freeport offer competitive incentives, tax credits and exemptions.

Recent developments at Port Freeport include the opening of the first phase of its Velasco Terminal, which will add further cargo-handling capabilities. With a new 800-foot-long dock and 20 acres of backlands, it promises an eventual offering of 2,400 feet of berthing and more than 90 acres of supporting land.

Meanwhile, the Port continues to work in conjunction with federal and state authorities to advance the project to deepen the Port’s channel to 55 feet from its present 45 feet, and substantially widen the channel as well. It is expected that benefits of the channel project should exceed its $300 million cost.

With so many developments pointing toward growing diversified activity at Port Freeport, anticipation has grown for its expansion, as the Port already holds impressive status as an economic cornerstone of the community and region—a dynamic force directly and indirectly responsible for nearly 60,000 jobs with an overall annual economic impact in Texas of $10.2 billion.

Unlike many ports, which are running out of available land, Port Freeport boasts more than 7,500 acres of currently undeveloped tracts, all proximate to the waters of the Gulf of Mexico. The Port is a mere 3 miles—45 minutes by ship—from the open sea.

The Foreign-Trade Zone Program adds to Port Freeport’s appeal. Since established in 1988, Port Freeport’s Foreign-Trade Zone No. 149 has helped American companies involved in global commerce to save money on the products they import into the U.S. through deferral, reduction and/or elimination of Customs duties assessed on foreign merchandise, and port officials have been fielding a lot of inquiries about the FTZ of late.

Port Freeport Managing Director Phyllis Saathoff, a past president of the National Association of Foreign-Trade Zones, pointed out that there may be no better time for businesses engaged in international trade to explore the benefits FTZ No. 149 has to offer.

“Especially in challenging economic times,” Saathoff said, “we are pleased to be able to offer businesses in the region another tool to stay competitive and reduce costs.”

Those seeking additional information about Port Freeport are encouraged to check out Port Freeport’s web site—www.portfreeport.com—or contact Mike Wilson at 1-800-362-5743, ext. 4325, or by e-mail at wilson@portfreeport.com.

St. Clair County: Blue Water Region in the Heart of MI

St. Clair County, MI, known as “The Blue Water Region” due to its abundant 140 miles of crystal blue shoreline, is strategically located in Southeastern Michigan. St. Clair County is home to the City of Port Huron, the “Maritime Capital” of the Great Lakes, which also serves as the terminus for an International border crossing between the United States and Canada via the Blue Water Bridge. The Blue Water Bridge is a twin-span bridge spanning the St. Clair River that links Port Huron, Michigan (USA) to Sarnia, Ontario (Canada)—two of the world’s largest trading partners—and provides quick access from Interstate 94/69 to highway 402. In 2010, the total value of trade between Michigan and Canada was $62.4 billion, an increase of over 40 percent compared to 2009 and the majority of Canada-U.S. trade is concentrated in the Province of Ontario.

A recent regional border study also indicated that more than $50 million is spent annually in The Blue Water Region by border friendly neighbors. This figure is expected to continue to increase if changes being proposed by the U.S. take affect. Imposing and increasing duty-free limits will only further promote cross-border activity between the U.S. and Canada and speed up the movement of goods into the United States.

Available logistics options in St. Clair County provide the perfect mix of transportation for freight and business travel. In addition to the International border crossing, the region also offers a 23-foot Deep Water Port, rail connectivity via two class I railroads (CN/CSX) with double stack capacity, a regional county airport plus two major international airports within a one hour drive time. Highway accessibility via I-94 provides southerly access to Detroit and important Midwestern markets, including Chicago and Minneapolis. Interstate 94 and 69 both provide direct access to Canada (highway 402). The region is a well connected transportation gateway throughout the United States and Canada. St. Clair County serves as one of the top three International Border Crossings in the U.S. and one of the busiest rail routes in North America.

The EDA of St. Clair County, (www.edascc.com) the region’s primary economic development partner, holds the operating designation for Foreign Trade Zone 210. St. Clair County’s FTZ 210 is located just minutes from The Blue Water Bridge and offers nearby rail connectivity and Deep Water port access. The EDA is working toward establishing an International Trade office and as a result will be heavily promoting FTZ 210, which in recent years has been under utilized. Establishing an International Trade office along with a marketing campaign aimed to better expose the tremendous potential that awaits future FTZ zone 210 operators is expected to dramatically peak interest and FTZ operations in 2012.

St. Clair County, MI boasts a successful manufacturing community with eight fully serviced industrial parks and a strong local business expansion record. Many companies came to the region due to transportation infrastructure and affordable business climate, resulting in numerous expansions and local business growth.

St. Clair County also is a community with very strong ties to the automotive industry, and is home to several successful automotive manufacturers such as ZF Group, Keihin, International Automotive Components, JCIM, Dana, TI Automotive, SMR, SMW and Chrysler. As part of the Detroit metro cluster, the area offers key connections to successful Tier 1 and Tier 2 suppliers.

Opportunities exist for additional industries including alternative energy and defense. The St. Clair County region is strategically located within one day’s drive to major wind energy OEM’s and centrally located to BAE defense assembly facilities and General Dynamics facilities. Large assembly components for the wind industry can often be seen traveling through the region’s St. Clair River. St. Clair County recently became the pilot location for testing a hydrokinetic device in development by the University of Michigan. The unit was placed in the mouth of the St. Clair River for Phase I testing and will return this summer for Phase II after testing modifications are complete.

St. Clair County offers transportation and logistics by water, air, highway or rail with a variety of FTZ border friendly sites currently available. For more information, or to view a map of available locations visit: www.edascc.com/ftz.php or call toll free 1-877-982-9511.

Jersey City: New Jersey’s Premier Destination for Business

With more than 245,000 residents who represent more than 90 different nationalities and a daily employee base of individuals from every race, creed and walk of life, it is no wonder that Jersey City has become a world-class city and the cultural center of New Jersey.

Jersey City Mayor Jerramiah T. Healy says: “Our diversity, regard for tradition and appreciation of innovation provided the basis of Jersey City’s cultural and economic growth. But certainly, the vision, determination and strength of our residents, merchants and business leaders have made this growth extraordinary.”

Many of the nation’s finest businesses and biggest retailers reside in Jersey City. Within its 15-square miles there are businesses and other establishments with decades-old roots in the community as well as brand-new entrepreneurial endeavors. Businesses choose to locate in Jersey City because of its proximity to Manhattan, and easy accessibility to a comprehensive mass transit system that includes the world’s great seaports, and three international airports.

Newer, less expensive commercial spaces with impressive amenities and state-of-the-art technologies are available with lower operating costs than those in Manhattan, and businesses thrive amid incredible housing opportunities, a flourishing cultural community, nationally known retailers, unique and culturally diverse shops and dining spots and world-class hotels.

In Jersey City, there is no city income, corporate, payroll or commercial rent tax.

The City of Jersey City and the Jersey City Economic Development Corporation (JCEDC) are committed to helping businesses thrive, not just survive. The JCEDC works in partnership with a whole host of public and private entities to provide the 1.4 million residents, business people and visitors who are in Jersey City each day with a comprehensive array of services and programs.

The JCEDC is home to the Jersey City Urban Enterprise Zone (UEZ)—one of the largest and most productive in New Jersey. One-third of Jersey City is designated as an UEZ, and participating UEZ businesses can charge half the standard sales tax—just 3.5 percent—on certain purchases. UEZ member businesses may be eligible for employee tax credits and reduced unemployment insurance. Additionally, UEZ members may apply for State of New Jersey programs such as Façade Rehabilitation and Relocation grants, InvestNJ Business Grants and Main Street Business programs and the Business Employee Incentive Program.

The Jersey City Economic Development Corporation also is dedicated to assisting businesses—especially small businesses and microenterprises—by providing tools such as technical assistance and access to financing that can lead to long-term success.

New Jersey ports and its logistics sector are responsible for more than 500,000 jobs. And each year, more than 600 million tons of freight with an estimated value of over $800 billion moves into, through and out of the state. From 2006 to 2008 cargo volume increased by 15 percent at the Port of New York and New Jersey, and in spite of the current recession, this level is expected to double in the next 20 years. It was this growth forecast combined with a desire to effectively meet projected demand that prompted the New York-New Jersey port complex to position itself to capture as much of the expected traffic flow. In 2005, New Jersey’s Portfields Initiative was launched as a joint project of the Port Authority of New York & New Jersey (PANYNJ), the New Jersey Economic Development Authority (EDA) and Public Service Gas & Electric (PSE&G), which spearheaded a public-private coalition of developers, logistics companies and communities to promote and market this effort. The goal of this initiative was to transform underutilized Brownfield sites into productive warehousing and distribution centers that would retain and attract logistics operations and create new jobs. There are currently 21 Portfields sites which have been identified as strategic centers most able to capitalize on emerging market opportunities and logistics trends for ocean and air freight-related warehousing and distribution operations. Each Portfields site is situated in New Jersey’s Port District, thus the name.

Portfields plans call for over 10 million square feet of new and improved warehouse and distribution space throughout the Port District. These projects involve private sector developers and, in some cases, have private/public sector partnerships of developers and public agencies, which sponsor various projects.

For complete information, visit the Jersey City Economic Development Corporation’s website at www.jcedc.org, or phone UEZ Director Roberta Farber at 201-333-7797.

Surprise, AZ Leads the Way with Maricopa FTZ

February’s news that Spain-based Gestamp Solar Steel is establishing its U.S. operations in Surprise contributed to nearly 1,000 new jobs announced in the community in just the last year, aligning with the strategic vision of creating a robust business environment that creates employment.

Gestamp will be open and operating by summer 2011. In Phase I, about 100 construction jobs and 50 permanent jobs will be created at the fabrication facility.

Gestamp manufactures steel support structures for use in the solar industry. The company will build a manufacturing facility and U.S. headquarters at Skyway Business Park inside the 2 square-mile rail-served Southwest Railplex.

“Surprise is the perfect fit for our company, meeting our need with shovel ready land complete with rail access,” said Jon Riberas, President & CEO of Gestamp Renewables. “Our company delivers quality products that demand a quality workforce, and we found what we were looking for in Arizona.”

At full build out, the plant will employee 300 people.

“This is what economic development is all about,” says Jeff Mihelich, Surprise Community and Economic Development Director. “Companies such as Gestamp Solar Steel take advantage of what we have to offer in terms of land and transportation access, an educated workforce and a great lifestyle. As a result, we generate good jobs for residents and welcome a new corporate partner.”

Gestamp operates hundreds of plants in 25 countries in Europe, the Americas and Asia. In 2010 Gestamp Corporation had revenue of approximately $6.5 billion and employs 20,000 people.

Surprise will waive up to $400,000 in review fees and invest up to $1.4 million in public infrastructure. Gestamp will have project office space at the city’s innovation center, the AZ TechCelerator, while their new facility is under construction.

Just last summer, Spain-based Rioglass Solar announced it would build its U.S. headquarters in Surprise and manufacture solar related products at the Skyway Business Park. Rioglass will invest approximately $50 million and create more than 100 new jobs in Phase 1, set to open this summer. A potential Phase II would add another 100 jobs and additional $45 million capital investment.

“It is exciting to be welcoming European-based companies to Surprise,” says Mihelich. “These large and established operations will be stable employers with a vast network of resources.”

Surprise has had success landing new large manufacturing operations due to its proximity to key markets and enhanced infrastructure. The Southwest Railplex industrial park has significant advantages in regards to rail, power and water. The park has 14 on-rail/off-rail shovel ready sites, an untapped power substation and water capacity to support large water users. Surprise has been named a “Micro City of the Future” by Foreign Direct Investment Magazine for its infrastructure and business friendliness.

In addition to the infrastructure, Surprise added a new major asset for business, a foreign trade zone. The Greater Maricopa Foreign Trade Zone (GMFTZ) was announced earlier this year, positioning the Surprise Southwest Railplex as one of the premiere locations for manufacturing and rail logistics.

The U.S. Foreign Trade Zones Board approved the GMFTZ in late December 2010. The Surprise Pointe Industrial Park, located inside the Southwest Railplex, is one of the four identified sites in west Phoenix.

“With the support of our City Council, Westmarc and West Valley communities, the FTZ will be an important tool to encourage growth and create jobs in Surprise,” said Surprise Community and Economic Development Director Jeff Mihelich.

FTZs are considered outside of U.S. territory for the purpose of customs duty payment. Goods entering FTZs are not subject to tariff taxes until the goods leave the zone, according to the federal government’s Trade Information Center. Merchandise that is shipped to foreign countries from FTZs is exempt from export duty, allowing firms to minimize their costs. Importing and exporting of goods is encouraged by FTZs because of these import and export duty breaks. In Arizona, companies receive additional benefits with a 75 percent reduction in property taxes.

A variety of activities can be conducted in a zone, including assembling, packaging, storing, repairing, combining with foreign or domestic content or processing, according to the Foreign Trade Zone Board, made up of U.S. Commerce and Treasury Department officials. Manufacturing and processing within FTZs requires FTZ Board approval.

For more information, contact Surprise Economic Development at 623-222-3326 or Mike.Hoover@Surpriseaz.gov.

The post Gateway to The Future appeared first on Business Facilities.

Late last month, a panel of biotechnology industry leaders appeared before the U.S. Congress’ Joint Economic Committee to urge congressional action to maintain America’s leadership position in biotech and the 21st century innovation economy.

There was good news and bad news in the industry’s assessment of biotech in the U.S.: On the one hand, the leaders lauded the astounding breakthroughs that have transformed biotech into a thriving growth engine for the U.S. economy; however, they also cited some disturbing trends warning that our lead may be slipping away.

Testimony at the Congressional hearing in May indicated that U.S. biotech companies are facing financial uncertainty at the same time that other countries are increasing their investments and enacting intellectual property protections to encourage domestic biotech growth. We still hold our place as the leader in global biotechnology patents thanks to our large head start, but China and India rank first and second in biotech patent growth. These emerging powers are heavily investing in science, and particularly in biotechnology.

Meanwhile, the U.S. has fallen to 20th out of 23 countries in new biotech patent applications. Additionally, many countries in Western Europe are implementing biotech-friendly tax incentives, including lower corporate tax rates for innovative industries, as a means to grow their 21st century economies. This lag has put the U.S. at risk of losing our place at the forefront of this important and innovative economic growth sector.

It takes an estimated 8 to 12 years for one of the companies developing breakthrough treatments to bring a new therapy from discovery through Phase I, Phase II and Phase III clinical trials and on to FDA approval of a product. The entire endeavor costs between $800 million and $1.2 billion. Due to this capital-intensive process, biotechnology companies lacking research and development funds turn to private sector investors and collaborative agreements to finance the early stages of therapeutic development.

However, the current economic climate has made private investment dollars extremely scarce. In 2010, venture capital fundraising endured its fourth straight year of decline and its worst since 2003. Biotechnology received just $2 billion in venture funds, a 27 percent drop from its share in 2009. Even worse, the biggest fall was seen in initial venture rounds, which are the most critical for early-stage companies. Series A deals last year brought in just over half of what they did in 2009. Decreasing upfront investment could mean cures and therapies being shelved in labs across the nation and ultimately not reaching patients.

There also has been a dearth of initial public offerings for biotech companies in the past two years. However, companies today with groundbreaking research do not have the same support on the public market. From 2004 to 2007, the United States had an average of 34 IPOs in biotechnology per year. From 2008 to the first quarter of 2010, that number dropped to a total of 8. While the numbers have ticked up slightly this year, the weak demand for these offerings is restricting access to capital. This then hampers critical research and depresses valuations of later-stage venture rounds, biotech leaders told Congress.

This is problematic for two key reasons, they said: first, it means that the early investors, generally angels or venture investors, cannot sell their shares. That means that they cannot return their initial capital or make any return to their limited partners, who are primarily large institutions such as public pension funds or endowments. Second, it means that companies are unable to access the considerable resources available in the public markets.

Speaking on behalf of the Biotechnology Industry Organization (BIO), Arthur Sands, president and CEO of Lexicon Pharmaceuticals, Inc., told the Joint Economic Committee at the May 25 hearing that urgent government action is needed to maintain America’s lead in biotech.

“Congress’ support for biotechnology is critical in this uncertain economic climate,” Sands said.

Sands lauded several recent federal legislative initiatives designed to boost the biotech boom in the U.S., including The Life Sciences Jobs and Investment Act, introduced by Sen. Bob Casey of Pennsylvania, which would incentivize research and investment in the life sciences industry on a targeted basis. Under the bill, a taxpayer engaged in the life sciences could elect an increased R&D tax credit for their first $150 million spent on life sciences research. The taxpayer also would have the option to return up to $150 million of foreign earnings to the United States free of taxation in lieu of the increased R&D credit.

The repatriated funds would be earmarked specifically for investment in new jobs, and would have to be kept in a special account or trust, to be disbursed only for permitted activities. Through this legislation, biotechnology companies would have the resources necessary to hire additional scientists and researchers, increase partnering with American universities and invest in new research facilities.

Sands also cited the recently introduced American Research and Competitiveness Act, which would support and foster the creation of the high-wage jobs associated with R&D in the biotechnology industry by strengthening and making permanent the R&D tax credit. A permanent R&D credit would provide greater certainty and assist American biotechnology companies as they plan future research investments in the U.S. The legislation also would increase the Alternative Simplified Credit (ASC) rate to 20 percent, making U.S.-based R&D more attractive relative to the research incentives offered by many foreign governments seeking to foster their own biotechnology industries.

On behalf of BIO, Sands made a pitch for Congress to extend the type of tax credits it offers high-risk sectors like oil and gas exploration to the biotech industry.

“Research and development in the biotechnology industry is a high-risk undertaking with substantial start-up costs, a lengthy R&D period and the possibility that the technology will not be commercially viable,” he said. “The challenges that smaller oil and gas corporations face in finding and developing new resources and diversifying risk are analogous to the hurdles that small biotech companies must overcome. These companies expend substantial financial resources on research and development before successful FDA approval.”

Sands continued, “As Congress looks to continue America’s leadership in the 21st century innovation economy, it should look to tax incentives available to the oil and gas industry that would be equally beneficial to the biotechnology industry. These incentives, when combined with the research and development tax partnership structure, would encourage investment in the biotechnology sector.”

For example, he noted, allowing biotech companies to drop their R&D projects into joint ventures with investors to provide tax benefits to those investors would create a powerful incentive structure for private investment in this high-risk industry.

Sands also suggested that Congress follow the example set by more than 20 states that have implemented angel investor tax credit programs, in which high-net worth individuals are incentivized to invest in small innovative businesses.

“Angel investors play a valuable role during the seed stage of therapeutic development,” Sands said. “They are the main source of capital for about 50,000 companies each year, but that number could decrease significantly unless action is taken to promote investment and minimize risk. The states have recognized the importance of angel investors and implemented tax credit programs reimbursing angels for 25 percent to 50 percent of their qualified investments in biotechnology and other small businesses. This investment by the states makes clear the important impact that innovation can have on the national level.”

Last March, Congress enacted the Therapeutic Discovery Project (TDP), a tax credit program in which small biotech companies received a much-needed infusion of capital to advance their innovative therapeutic projects while creating and sustaining high-paying, high-quality American jobs. In total, the Therapeutic Discovery Project awarded $1 billion in grants and tax credits to nearly 3,000 companies with fewer than 250 employees each. These small companies were eligible to be reimbursed for up to 50 percent of their qualified investment in activities like hiring researchers and conducting clinical trials. The impact of this funding was felt across the American biotech industry, as companies in 47 states received awards. The average company received just over $200,000, an important shot in the arm in these rough economic times.

In the uncertain national economic environment, the most successful state biotechnology initiatives are being engineered as cooperative efforts between industry and academia, with government playing an organizing role and lending a helping hand with R&D seed money. Here is a sampling of some of the more innovative and successful efforts.

BIOTECH ACCELERATES ON HIGH-SPEED LANE IN KANSAS

In Kansas, a burgeoning Animal Health Corridor is expanding so fast the Kansas Bioscience Authority has decided to invest $1 million in a consortium that will act as a “high-speed lane” to link business, academia and government development efforts.

KBA approved the seed money to establish a public-private consortium called the National Center of Animal Health Innovation. This center of innovation will bring nine area animal health companies, plus regional universities and government agencies, together to accelerate job creation, research, development and commercialization of the next generation of animal health and nutrition products.

“The Center of Animal Health Innovation will effectively serve as a filling station for the pipeline of animal health companies,” said Tony Simpson, KBA director of commercialization. “Identifying new technologies is expensive and time consuming for animal health companies. For entrepreneurs and universities, getting their discoveries into these large companies can be a big challenge.”

“These new technologies often need an industry perspective to mature them before a company will invest,” Simpson added. “The Center will help companies identify and refine promising new technologies, while helping researchers find someone to partner with to commercialize the new technologies they’re developing.”

The Center’s seven-person board of directors seats members from five leading animal health companies, including board chairman, Dr. Wayne Carter, vice president-global research for Hill’s Pet Nutrition. Paula Stack, the Center’s interim CEO, sees this as a competitive advantage. Established animal health companies can provide researchers an industry-driven perspective on the types of products the industry needs and those that have the greatest potential, she said.

“Our efforts are focused on promoting this synergy between academic and industry partners,” Stack said. “The Center’s primary role is to help accelerate the development and commercialization of new technologies that will positively impact the animal health industry.”

Kansas State University’s leadership role in animal health and animal disease research made the school’s new Olathe campus the right location for the new Center, according to Dr. Dan Getman, president of the Kansas City Area Life Sciences Institute. Getman was instrumental in bringing the region’s animal health companies together to recognize the Center’s potential and provide the needed expertise that shaped the proposal for the KBA.

Initially, Stack and her board will be busy establishing the Center’s operations and recruiting a scientific advisory board of “best-in-class” people that will review and assess new technologies, both from a science and a business perspective. In addition to Simpson, Getman and Carter, the board includes Dr. Ernst Heinen, vice president, research and development, Bayer Animal Health; Mark Metrokotsas, president and CEO, Centaur; Dr. Kristi Moore Dorsey, vice president, research and development, CEVA/Biomune; and Dr. Edward Robb, vice president, research and development, Boehringer Ingelheim Vetmedica, Inc.

Participating companies at the Center will include Bayer Animal Health, Boehringer-Ingelheim Vetmedica, Centaur, Ceva Biomune, Hennessey Research, Hill’s Pet Nutrition, Intervet/Schering Plough, Nestle/Purina and Teva Animal Health. Participating universities, organizations and government agencies are expected to include: University of Kansas, Kansas State University, University of Missouri, Midwest Research Institute, U.S. Department of Agriculture Research Services, USDA Animal and Plant Health Inspection Service, FDA Center for Veterinary Medicine, National Bio and Agro- Defense Facility (NBAF), Morris Animal Foundation, National Institute for Strategic Technology Acquisition and Commercialization (NISTAC) and others.

In its first year, the Center plans to complete a strategic plan that will clearly define the Center’s mission, vision and value proposition. Additional funding will be based on the achievement of these and other key milestones.

The Center and its goals fit like a glove with the region’s focus on animal health. More than 120 companies representing at least $7 billion of the $19 billion global animal health market are clustered between Manhattan, KS and Columbia, MO. The region has the largest single concentration of animal health companies in the world.

The National Center for Animal Health Innovation is the fourth “center of innovation” the KBA has initiated and funded. The other Centers include the Kansas Alliance for Biorefining and Bioenergy; the Center of Innovation for Biomaterials and Orthopaedic Research; and Heartland Plant Innovations. The centers are led by industry and link research assets and industrial partners to develop new innovative products and create jobs.

Also moving forward in Manhattan, KS is the crown jewel of the state’s biotech hub, the $650-million National Bio- and Agro-Defense Facility (NBAF). Congress recently authorized $40 million in first-phase development funding for the project, which will become the nation’s premier biodefense lab, replacing a 50-year-old facility on Plum Island in New York.

“We understand the difficult economic climate our nation faces today. That’s why we appreciate even more the resolve and commitment of the Department of Homeland Security to fund the NBAF. There is no question that a safe and secure food supply for every American is a national priority of the highest order,” said KBA Chairman John Carlin.

The NBAF will be a highly secure biosecurity level 3 and 4 facility on the Kansas State University campus where top government scientists and researchers will study foreign animal, emerging and zoonotic (transmitted from animals to humans) diseases that threaten the U.S. animal agriculture and public health.

“NBAF will provide and strengthen our nation with critical capabilities to conduct research, develop vaccines and other countermeasures, and to train veterinarians in preparedness and response against these diseases,” Carlin said.

“Beyond its immediate scope and mission to protect our nation’s food supply, the NBAF will be a major economic driver for this region and the State of Kansas. Starting with the construction of the $650 million facility and continuing with the ongoing employment of a highly educated workforce, the NBAF’s economic impact on Kansas will be significant, estimated at up to $3.5 billion in the first 20 years of the facility’s use,” he added. “Additionally, the NBAF will serve as a magnet for private industry. It will attract new jobs as private biotechnology companies, professionals and support infrastructure aligns to capitalize on the concentration of animal health and plant science assets in the state.”

NBAF will serve as the nation’s premier research center for combating agriculture’s vulnerability to naturally occurring diseases or agro-terrorism. Several reports, including the Congressional report entitled The Clock is Ticking, conclude that the most imminent threat to our nation’s homeland security is a biological attack.

“Now that funding for the central utility plant is approved, KBA will work closely with the Kansas delegation and others in Congress to secure approval of the $150 million proposed for the project in President Obama’s FY 2012 budget,” Carlin said. “Above all else, NBAF is about protecting America’s dinner table and our nation’s agriculture economy, but it’s also about jobs and economic vitality of our state for many years to come. NBAF will attract and retain highly educated, well-paid workers as well as support businesses that will cluster around Manhattan and elsewhere in Kansas. This is an economic engine that will pay dividends for generations of Kansans.”

Other recent project developments funded by KBA include:

• KBA is investing $1.5 million in support of Kansas State University’s construction of the Feed Technology Innovation Center on the Manhattan campus. The planned facility will be jointly shared by the University’s Grain Science and Industry and Animal Science and Industry departments and will provide for production, research, teaching and laboratory facilities to study the impacts of nutrition on animal health and disease. The facility is expected to cost $13.8 million to construct and equip.

• KBA awarded $500,000 to Evogen, Inc., a Kansas City, MO-based device and diagnostics company, to support the relocation of its facility to Olathe, KS. The company plans to invest approximately $1.8 million in its new facility over three years.

• Abaxis Veterinary Reference Lab (AVRL) will receive $650,000 over three years to launch the first centralized nationwide veterinary reference lab, which will offer a wide range of diagnostics to veterinary customers in the companion animal health industry. Currently based in California, AVRL has selected local entrepreneurs to start the company, and an existing site in Olathe to build out for its laboratory facility.

• Immunogenetix Therapeutics, Inc. (IGX) of Lenexa will receive up to $428,070 to perform key preclinical studies in collaboration with Kansas companies Xenometrics, LLC and Beckloff Associates, Inc. This funding will allow IGX to advance GenePro™, the company’s lead DNA therapeutic HIV vaccine, through the necessary preclinical studies to an application with FDA to initiate Phase I clinical trials.

• OsteoGeneX of Kansas City, Kan. will receive $450,000 as a partial match to a grant from the Israel-U.S. Bi-national Industrial Research and Development Foundation (BIRD). The grant will allow OsteoGeneX to work with Nextar Chempharma Solutions Ltd., an Israeli Contract Research Organization. The KBA grant will support the studies necessary for successful drug selection and optimization for OsteoGeneX’s spinal fusion and fracture repair medical device development program.

• Pinnacle Technology, Inc. of Lawrence will receive $424,895 over three years as a partial match to the company’s Fastrack NIH SBIR Phase I/II grant. Pinnacle specializes in wireless, web-enabled, brain/neurological biosensors, data acquisition and biotechnology products for the pre-clinical research market.

Priority: Skilled workforce

In addition to research and development facilities that offer a high-speed lane to commercialization, Kansas also is staking out a leading position in biotech workforce training. Kansas State University’s Biosecurity Research Institute (BRI) recently became the National Biosafety and Biocontainment Training Program’s first designated training facility in the nation.

“When the BRI was designed, we knew it wouldn’t be enough to build a facility focused exclusively on research needs,” said Ron Trewyn, K-State’s vice president for research. “Those charged with performing the research and working in the facility must also be adequately prepared to conduct their tasks in a safe manner.”

BRI, at K-State’s Pat Roberts Hall, is the only biosafety level-3 biocontainment research and training

facility in the U.S. that can accommodate high-consequence pathogen research on food animals, food crops and food processing under one roof, which allows for a more comprehensive research approach. Pat Roberts Hall is also equipped with an integrated training suite that includes a classroom and mock lab, as well as a large auditorium and advanced video capabilities.

Murray L. Cohen, president of the Frontline Healthcare Workers Safety Foundation, which serves as the government contractor for the National Biosafety and Biocontainment Training Program, noted the vision it took to pull together a facility like the BRI.

“Kansas State University, through the Biosecurity Research Institute, has shown bold foresight in planning for biosecurity and food security matters,” he said. “This facility is unparalleled and unsurpassed. It took at lot of vision and gumption to move forward and put this together while a lot of folks were simply talking about what is needed.”

A COMPREHENSIVE TRAINING PROGRAM IN NORTH CAROLINA

Training also is a top priority in North Carolina, which has emerged as the nation’s third largest biotech industry with more than 520 bioscience companies, contract research organizations and device and life science-related companies. More than 58,000 workers with skill sets ranging from bioprocess technicians to PhDs are employed by this sector. The annual salary for entry level technicians starts at $25,000 to $30,000 and can potentially rise to $50,000 within 5 years. The average salary for all biopharmaceutical manufacturing jobs is $69,000. Biotechnology companies generate about $4.5 billion in annual revenue in North Carolina. Biotechnology employees represent a payroll of $1.7 billion and around $176 million in state income taxes.

Pitt County in particular offers tremendous assets to the growing biotechnology and life sciences industries in North Carolina. From training in bioprocessing to a research-intensive university setting, this location rivals others for its amenities coupled with a lower-cost business climate.

To help meet the industry’s ongoing need for trained professionals, North Carolina has created a comprehensive biotech training program partnering with government and academia through the North Carolina Biosciences Organization.

BioNetwork supports the mission of the North Carolina Community College System aligning world-class workforce training and education to the biotechnology, pharmaceutical and life science industries. BioNetwork trains at all levels of this industry, upgrading the skills of incumbent workers, from entry level to management.

The Biotechnology Center was created in 1984 and works to strengthen the research capabilities of North Carolina’s companies and universities. The center’s mission is to provide long-term economic and societal benefits to North Carolina through support of biotechnology research, business, education and strategic policy statewide. The Eastern Office of the North Carolina Biotechnology Center (www.ncbiotech.org), located in Greenville, is catalyzing economic development and job creation in the region.

The region is home to several large biopharmaceutical production facilities, including one of the largest contract manufacturing facilities in North America, operated by DSM Pharmaceuticals. DSM Biologics, a business unit of DSM Pharmaceutical Products, recently announced a contract with NKT Therapeutics, Inc. based in Waltham, MA, a biotechnology company that focuses on developing therapeutics based on unique immune cells called natural killer T (NKT) cells. The contract covers the process development and cGMP manufacturing by DSM of their lead product, iNKT mAb. NKT cells are a central part of the human immune system. Upon exposure to microbial and viral pathogens NKT cells secrete high levels of specific cytokines which stimulate the immune system to eliminate pathogens.

“We are delighted to be working with NKT Therapeutics from our European biomanufacturing operations located in Groningen, the Netherlands. We are truly honored to be supporting their first clinical program from our cGMP operations,” said Karen King, president of DSM Biologics. With a range of mammalian bioreactor sizes from 50 liters up to 1000 liters and, process and analytical development capabilities, DSM offers development and production flexibility combined with economy.”

The state legislature created the Biofuels Center of North Carolina in 2007 with the mission of developing a statewide biofuels industry. The Center, which is a private, nonprofit organization, received an initial appropriation of $5 million and has continued to receive operating support from the state. The Center awards funds on a competitive basis to academic institutions, economic development organizations, and nonprofit organizations to identify and bridge gaps in knowledge and information, speed development of technology to industry, and create a seamless continuum from agriculture to transportation fuels.

An estimated 5.6 billion gallons of petroleum-based liquid fuels are consumed in North Carolina annually. According to the state’s Strategic Plan for Biofuels Leadership, adopted when the Biofuels Center was created, “North Carolina is well-advised to gain internal capability for production of a measurable percentage of its liquid biofuels consumption. Doing so reflects increasingly strong national and federal mandates, and is also mirrored by other states—many of which are targeting biofuels development far more aggressively and measurably than North Carolina. More importantly, gaining increased internal biofuels capability is eminently feasible in this State in coming decades. North Carolina is remarkably well-positioned to shape science, biotechnology, agricultural and biomass resources, smart participants and policies into an internally strong biofuels sector.”

The first-ever census of biofuels employment across the state found a larger number of jobs than was expected so soon for a new and emerging sector. According to the survey, recently conducted for the Biofuels Center of North Carolina by third-party market research firm Bioscience Information Partners, 443 people statewide are actively involved in biofuels research, biomass growing, technology development, production, distribution, workforce development and education and other supportive roles.

“Results reveal a sound footing for North Carolina’s new biofuels sector,” said Biofuels Center President and CEO Steven Burke. “Having 443 jobs already, with anticipated future growth of respondents, verifies the state’s smart policy commitment to gain large capacity for alternatives to imported petroleum-based liquid fuels. More jobs will come, as will millions of gallons of liquid fuels.”

Sixty-two public, private and industry organizations completed the survey. Despite challenging economic factors, 97 percent of survey respondents expect their respective organizations to maintain or ramp up biofuels-related employment in the next 12 months.

The Biofuels Center of NC recently awarded $1.6 million for 15 projects statewide to accelerate the commercialization of renewable liquid fuels. Awards were made through the 2011 Statewide Biofuels Development Grants Program.

CEO Burke affirmed the value of both the large number of proposals and those awarded. “The juncture of new energy and new agriculture requires smart ideas and practical commercial outcomes. The 15 awarded projects-encompassing rural communities and woody biomass, technology and municipal solid waste-verify the competence, scope and remarkably rapid development of this new sector statewide,” he said.

Strengthening and funding capabilities statewide for biofuels commercialization is a prime task within the Center’s legislative and policy mandate, and key to development of sector leadership, economic return, and meeting the state’s goal: by 2017, 10 percent of North Carolina’s liquid transportation fuels will come from biofuels grown and produced within the state.

The Center received 58 pre-proposals totaling more than $5.2 million from 23 institutions following its December 2010 request for proposals. Emphasizing commercialization, the program sought projects targeting three areas:

• County or regional analyses of assets available for site location of biofuels companies

• Needs analyses and plans for the conversion of municipal waste into biofuels

• The growing of energy grasses in the North Carolina Piedmont region

The awarded projects will impact 60 counties and will in various ways address biofuels ranging in variety from biogasoline and bioethanol to FT diesel and biomass-derived jet fuel. Expert panels comprised of industry, non-profits and state agency representatives reviewed the applications in a competitive process and made funding recommendations for approval by the Biofuels Center Board of Directors.

Four regions of the state will work with forestry consultants to assess the availability of woody biomass in their respective regions. The strategy is a three-phase approach that will provide a regional assessment suggesting the optimum two sites per region, the validated infrastructure required for a biofuels production facility and a detailed woody biomass assessment for the selected sites.

North Carolina has a leading, specialized and growing bioscience industry. Among four major subsectors quantified in the comprehensive 2010 report by BIO and Battelle, the state has a specialized employment concentration in three—drugs and pharmaceuticals, research, testing and medical laboratories and agricultural feedstock and chemicals. Academic bioscience research and development expenditures totaled $1.52 billion in 2008, and have grown faster than the national rate. The largest academic R&D categories were medical sciences ($834 million) and biological sciences ($510 million). Both academic bioscience R&D and research funded by the National Institutes of Health are highly concentrated in North Carolina with per capita research funding ranking near the top among all states.

The state’s biomedical institutions hosted 732 active clinical trials in 2009. Bioscience venture capital invested in North Carolina bioscience companies during the last six years totaled $1.76 billion, focused heavily in human biotechnology, followed by medical therapeutics and pharmaceuticals. Drugs and pharmaceuticals led the 2,307 bioscience patents issued during the same period.

BIO RISING IN SOUTH DAKOTA

South Dakota has specialized employment concentrations in two of the bioscience industry subsectors—agricultural feedstock and chemicals and medical devices and equipment—and job growth across all four subsectors. Academic research and development expenditures in the biosciences also have grown rapidly, up 70 percent since 2004 to a total of $61.3 million. Academic R&D was led by agricultural sciences and medical sciences. The 55 bioscience patents issued to South Dakota inventors during the last six years were primarily in surgical and medical instruments and in biotechnology.

South Dakota has established six biotech-oriented research centers, including a unit focused on translational cancer research. The centers are aimed at growing the state’s economy by targeting investments in specialized research at South Dakota public universities. A new biotech animal research facility also is under development.

During a groundbreaking ceremony for the new Innovation Campus at South Dakota State University, then-Gov. Mike Rounds announced that the Drought Tolerance Biotechnology Research Center (DTBRC) at SDSU would join the five other highly-specialized research centers already in operation. This followed the state legislature’s approval of Gov. Rounds’ request to create a fifth center focused on Bio Processing.

Then-Gov. Rounds noted that after only 24 months in operation, the four original research centers now report a $40 million economic impact from a state investment of $5.4 million.

The drought tolerance biotechnology center focuses on research that leads to emerging technologies in drought tolerant crops. This research could potentially accelerate the availability of drought resistant products to the market by one to three years. A primary focus of the center will be to identify genes associated with drought, temperature, disease resistance and crop quality. All of these traits are important for South Dakota’s growing biofuel and feedstock industries.

Yankton, SD is a good example of the development of biotech jobs potential in South Dakota. The city’s economy has three primary sectors—medical, manufacturing and agriculture. The medical community is buoyed by three main entities—the State Human Services Center, Avera Sacred Heart Hospital and Yankton Medical Clinic. Yankton, a city of 14,500, has more than 3,200 professionals employed in medicine and human sciences, including more than 140 physicians who research and practice a full spectrum of medical and biotechnological applications.

Biotech companies located in Yankton include Vishay Dale Electronics, Applied Engineering and Direct Biologicals. Vishay and Applied Engineering manufacture precision components for various medical applications, Direct Biologicals is an entrepreneurial startup that produces bacteria used in the cleaning of feed lots and in other agri-science applications. Local grasses in Yankton are being used in bioenergy research.

AIMIN FOR 2020 IN MD

Maryland is home to the highest concentration of federal biotech research facilities, anchored by the National Institutes of Health (NIH). Taken together, Maryland’s bioscience research complex is conservatively estimated to represent nearly $8 billion in research and development expenditures annually, third in total size only to California and New Jersey, which possess major industry R&D. The state also has a leadership position in academic R&D per capita, led by Johns Hopkins University, the top recipient of NIH funding in the U.S.

Maryland Gov. Martin O’Malley is seeking to spur biotech development with his $100-million InvestMaryland program, which would provide tax credits to insurance companies so they could invest in technology companies, including biotech research facilities. The state also is well under way with its Bio 2020 plan to invest at least $1.3 billion in biotech across the decade. The 15-year-old Maryland Venture Fund, which makes direct investments in technology and life sciences early-stage companies, has invested $25 million and returned more than double that investment.

Under the Bio 2020 plan, the Maryland Biotechnology Center was established within the Maryland Department of Business and Economic Development to coordinate a host of state, university and private sector initiatives to support biotechnology innovation and entrepreneurship in Maryland.

The Center works closely with university technology transfer offices and commercialization programs such as the Maryland Technology Development Corporation (TEDCO) and the University of Maryland’s Maryland Industrial Partnerships (MIPS) program to foster and fund collaborative initiatives between bioscience enterprises, universities, and federal labs. In certain qualifying cases, the Center can supplement funding of industry-university and industry-federal labs research partnerships. The Center has created a BioEntreprenuer Resources Program which assists entrepreneurs in leveraging available public and private capital. The Center also works closely with the University of Maryland School of Law’s Intellectual Property Legal Resource Center (MIPLRC). The MIPLRC provides free legal services on the subjects of business and intellectual property to start-up bioscience enterprises.

Maryland’s burgeoning biotech cluster continues to expand exponentially. A good example is MedImmune, now part of AstraZeneca, which is completing its new 337,000 sq. ft. Frederick Manufacturing Center. The Frederick facility will be one of the biggest bulk biotech manufacturing facilities in the country. The $600-million facility will employ 250 when it opens and is expected to take five years to ramp up to full production, when the workforce may double.

MedImmune also is expanding its headquarters complex in Gaithersburg, investing $200 million and increasing the lab staff to 600.

Qiagen, a Netherlands-based supplier of sample and assay technologies in the life sciences sector, is expanding its North American headquarters and manufacturing center in Germantown. The $2-million expansion, to be completed in four phases, will add about 90 new jobs. Qiagen employs more than 3,500 globally, including nearly 700 across its three locations in Maryland at Germantown, Gaithersburg and Frederick.

The post Biotech: Finding the Formula for Growth appeared first on Business Facilities.